Forex Trade Signals and Setups Mar. 15th

Verified Profitable Trader

EURJPY – Possible Double Top?

After price pulled back from the  former yearly highs at 109.94 printed on Feb. 28th, it landed squarely on the daily 20ema which offered a great pullback Trend-C (trend continuation) signal to get back in the trend and it didn’t disappoint.  Since then, price has climbed 5 of the last 7 days and climbing almost 350pips since then.

But, it should be noted we are approaching the yearly highs at 109.94 once again, with current prints around 109.30.  Traders should watch for price action triggers here as there are plays for both bulls and bears.

price action forex double top 2ndskiesforex mar 15th

For the bears, look for a pinbar or engulfing bar off the 109.94 area for your trigger.  Should you find one at that level, say on the 4hr or 1hr time frame, then look to short with tight stops above 110 targeting  108.72 and possibly a pullback to the daily 20ema.

For the bulls, look for a breakout retest setup with price stabilizing above the 110 level.  If this occurs, then look to target 111.50 with tight stops below the 110 handle but there are definitely plays on both sides of the market.

On the Fundamental Side:
While Spanish housing continues to plunge with a crash in home prices accelerating, on the Eastern side of the Mediterranean, you have Greece (great place to visit, save Athens, the mass protests, constant looting and fires breaking out).   Greece, being the father of western civilization might just be the one to bring it all down.  Why?

Well, the citizens (indentured monetary slaves at this point) continue to hand over its real assets to the disaster zone (read euro-zone) all just to be part of their club while unemployment rises and banking deposits flee the country in mass exodus like the Israelites left Egypt.  All this we suspect this will continue to put pressure and uncertainty on the Eurozone and thus short term be USD bullish.  And while things have not changed in Japan with debt to GDP ratio at 235% (yikes), we could be seeing a pullback in JPY pairs being a little over-extended.  Medium term, we expect the JPY pairs to continue to hammer the land of the rising sun and eventually make new yearly highs in the near future so we remain bullish medium term on JPY pairs, especially the USDJPY which has been exceptionally strong, along with GBPJPY, then in third place EURJPY.

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