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There is more fundamental argument on the long side of EURJPY, but as we are day traders in the forex market we have to go against the macro trend which might be profitable for swing trades. As we learned and as the common sense says – the trend is our friend – but in some cases we have to go against the trend, because I have never seen any ever lasting long trend.

So here is the EURJPY first. The macro trend is more than obvious and it is long. But this morning we see a setup for taking a short. In contra trend positions we have to be more careful than we normally are.

The long trend was broken this morning in the European session. If you don’t want to trade only today but rather on the longer term such as the weekly scope, it shows strength on the long side. If I am not a daytrader I would buy this pair for this week.   Our levels are the followings:

EUR JPY Technical Analysis 1 hour chart for foreign exchange trading

Setup: 129,93

Stop loss: 130,20

Target price: 129,00