FxWirePro: EUR/JPY target reached, fresh extension to 106

Any reader who has gone through our call in EUR/JPY,

“Sell Euro, against Yen at current price of 123.5 and at rallies, targeting 119, 116 and 112 area with stop loss around 128.5.” will be able to relate to this extension easily, if not, you can check out the post here, http://www.econotimes.com/FxWirePro-Euro-to-trade-lower-at-112-against-Yen-medium-term-outlook-197059 .

As you can see the target has been reached post-referendum and the pair reached as low as 109.5 on 24th of June. Hope you haven’t closed that position because we are extending that target to 106 at least. Even if you have you can go with the current momentum as if you haven’t booked it.

As of now, we don’t see Yen moving beyond the 106-105 area, however, a further extension in the future can’t be ruled out. The biggest risk this position bears is none you have sold at our recommended area around 123 if you were very late it the risk of intervention from the bank of Japan (BoJ). However, we strongly feel that any such intervention will be effective only in the short term. It may even present an opportunity for lucrative shorts.

So, keep riding this short as it is already 1300 pips in the money.