Last week I went long the US Dollar against the Japanese Yen, and I’ve most recently bought the Euro against the US Dollar. I’m effectively long the EURJPY.
I think this makes sense for the reasons I highlight in my article this morning: EURUSD $1.30 represents critical support and retail trading crowds remain heavily net-long US Dollar across the board.
I like the EURUSD position as long as we remain above $1.30, and the USDJPY position remains in force as long as the pair trades above ¥76. Profit targets start at $1.3165 on EURUSD and ¥80 on the USDJPY.
These trades imply a target of ¥105.30 on the EURJPY.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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