eur/jpy due for a 700-800pip correction?

Is anyone else currently on this one? I just entered a short@ 157.70 as i expect a fall down to 150, possibly 149 (50% retracement of the move upwards that started back in mid May). There is currently a massive bearish divergence on the daily chart.

I suspect this pair will only go down if BOJ start increasing rates..

yes i also expect it to reqch its late 1998s top near 164 eventually, but not before a correction

There was massive bearish divergence 1000 pips ago as well (june-july '06)

Carry trade always wins...hence the reason why the shorts are hard, the longs are long. You'd be going against the odds on a short trade with JPY pairs imo

You are very right Phil, but in Jne-July it showed oversold on the weekly,whereas now the opposite was the case. But i have locked in 170 pips profit cause u can never b sure with the crazy JPY pairs. I am also in some AUD positions (shorted AUD/CAD@9260, AUD/USD 0.7903 and now just opened a USD/CAD [email protected] though this might rise another 100 pips or s before it crashes so bigger SL there . But Icouldn' t resist

exited the EUR/JPY short for a nice ~300pips profit. It looks like it is bottoming out, just like the EUR/USD and GBP/USD.


My AUD and USD/CAD shorts are looking nice

(I have exited the AUD/USD short for a tidy sum and kept only AUD/CAD and USD/CAD shorts)

To me it looks like round 2 of EUR/JPY (and GBP/JPY and USD/JPY) is about to begin. Another ~300-400pips for the E/J pair?