EUR/JPY 127.00 ‘s Vs USD/CAD 1.2700’s. Showdown and both USD/CAD and EUR/JPY become overnight Winners.
USD/CAD opened the week at 1.2684 and EUR/JPY at 127.03. Kissing cousins at this stage but we also know from long term targets USD/CAD is supported at 1.2584 and as posted yesterday, EUR/JPY was overbought and heading lower.
The week began with a separation of 19 pips or a 9 pip average. This means 1.2693 and 126.93 represents the crossover point. Bad number for 9 because its an uneven and means 1/2 is 4.5. Pips matter as does entry and targets.
So far USD/CAD traded +72 pips above 1.2693 to 1.2765. EUR/JPY traded to 126.76 lows or 17 pips. Both trades profited 89 pips. Understandng is 1/2 the battle.
How about charts. Very slow and non responsive to the crossover. Charts won’t ever assist in trading. Traders will always be late to entries and god only knows in regards to targets. By the time most enter trades, we entered long before and are already in profits.
The best chart to reflect an early warning to EUR/JPY and USD/CAD is below from January 6 to 10 or a 4 day chart. EUR/JPY was at a top and USD/CAD at bottoms. The actual crossover will reflect today at 10 am EST with the ECB. Too late
January 7 to 10