FxWirePro Call review: Add long positions in Euro against Yen as correction ends

Back in July 2016, in an article named, “FxWirePro: Yen may retrace to 130 per euro”, available at http://www.econotimes.com/FxWirePro-Yen-may-retrace-to-130-per-euro-235397, we suggested that yen may retrace to as low as 130 per euro from the then current rate of 116 per euro. However, at that time we had expected Bank of Japan (BoJ) to be more dovish and that to drive the pair. While BoJ has maintained its dovish stance, it is the diminishing political risk premium in Europe after the win of Emmanuel Macron in the French election and the change instance of the European Central Bank, have driven this pair to 130 per euro.

In a subsequent article, named, “FxWirePro: Euro reaches target at 130 against yen; target extended to 142”, available at https://www.vinsonfinancials.com/cn/financial-news/1161925-fxwirepro-euro-reaches-target-at-130-against-yen-target-extended-to-142 we suggested that the bull trend is likely to continue with occasional correction and forecasted that the yen to reach as low as 142 per euro going ahead.

In a follow-up article, in February this year, https://www.econotimes.com/FxWirePro-Call-Review-EUR-JPY-target-extended-from-142-to-146-1130252 we urged our readers to maintain long positions in the euro as the call was already 2100 pips in the money and that time the pair was trading 137 area. We also extended our final target from 142 to 146 area.

Since then the pair has corrected further as the yen rode on risk aversion largely stemming from geopolitical tensions and trade war. As the risk aversion is fading once more, we expect the bull trend to resume. In this article, we would like to urge readers to add additional long positions in the euro against the yen at the current rate of 132.4 with an additional interim target of 137 area. Fresh trades can also be entered with 128.5 as the stop loss.