Forex Price Action Setup – EUR/JPY Daily Inside Bar | Sept. 10th
After breaking out to the upside of the 12 day consolidation, the EURJPY climbed for two days straight jumping about 200pips in the process. Although today some of that bullish momentum waned as the pair formed an inside bar pattern on the daily charts, closing below the 100 big figure in the process. This might be ideal though as the pair could pullback to the former resistance (now support) of the prior 12 day range highs.
If the price action comes back to this level in a corrective or weak fashion, then I will look for price action setups around the 99 level to get in with trend, targeting the breakout highs of 100.30 offering a solid reward-risk play.
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Global Market Commentary:
US indices fell a bit today on low volumes ahead of the key FOMC meeting this Thursday. Although the main US indices made some crucial highs, I suspect its possible position paring ahead of the key meeting where Ben may announce more easing.
Critical to this whole easing risk on play though is the German ruling this Thursday as well, as the German Constitutional Court will rule whether it is actually legal to contribute to the EuroZone’s rescue funds. Weak economic data out of China did not help the overall sentiment leading into the US Session.
The DOW fell 52pts while Gold dropped $13.50.
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