Staying out of EURJPY

12.50 gmt

I’ve closed the last opened long trade in EURJPY at 130.40, -27 pips.

This pair has frustrated me over the past 2-3 weeks. It appears my method doesn’t work with this pair. It simply doesn’t follow normal ranges and patterns as other major pairs do. It could be because this is a cross, and I know that my method doesn’t work well with crosses. I don’t bother with other crosses but EURJPY should have deep liquidity (I think) and therefore should behave like other very liquid majors. It does not seem to.

I have therefore decided not to trade this pair for the near future, at least not in my ‘swing trade’ method. I may take a position in it at major tops or bottoms for a longer play, but for now I will stay away from EJ.

Btw, I noticed a significant move up in EJ and UJ starting about half hour before the claims data was released. Looks suspiciously like someone got their hands on the data ahead of the rest.

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5 thoughts on “Staying out of EURJPY

  1. Daniel

    Probably it’s just the huge option expiring this Friday as rumoured zen. I was planning to trade the wide range of 97/99 but we never go close to that edge of the range. If tomorrow price is close to 98.10 at expiry then it will confirm that the choppiness of the price in the past couple of days are caused by big money defending and attacking the option

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    1. ZenFXTrader

      Good point Daniel. We’ll see. I thought the large option expiry was last Friday. On the other hand, the price action due to option activity should show up as narrowing triangle or wedge, but the EURJPY shows no clear patterns! Poor summer liquidity is one other issue.

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  2. Daniel

    No, I first heard about the rumour on Monday this week which then explains the move from 96 to 98. I think option player have much more strength during low volume summer trading.

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  3. Daniel

    Also I just noticed that for today expiry the strike is also at 98.10 and see how the price move there exactly at 10 am NY time. The power sometimes is scary, but it’s not always like that outside the summer lull.

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