This is in regard to our previous call to short Euro at 123.5 against yen with final target around 112 and stop loss around 128.5. Details of our prior call is available here – http://www.econotimes.com/FxWirePro-Euro-to-trade-lower-at-112-against-Yen-medium-term-outlook-197059
Last week, significant short covering in Yen, in anticipation of further actions from Bank of Japan (BOJ) and Euro’s march against Dollar, saw significant deterioration in our position. At one point, the call was almost 300 pips in the red, but no action from BOJ has led the call into positive. We are now 90 pips green and much more confident over the call, though it may take some time before the final target is reached.
In occurrence of last week’s big move in Yen and in the pair, we anticipate some changes to our short call is required.
We prefer revising our final target 50 pips higher to 112.5. (This is due to last week’s move that changed our calculation matrix).
We would also prefer to revise our stop loss to pre-BOJ high around 126.5.
With the above changes, we feel our call is still good and live for entry, anyone who missed out earlier.
The material has been provided by InstaForex Company – www.instaforex.com