EJ is in a tight range as are almost all the JPY crosses.
The JPY crosses are in up trends.
The past week has seen price trapped with resistance above and support below brought about by the JPY weakness.
Chart below:
There are signs that we could see a decent pull back in the JPY crosses
With Divergence on the Oscillating indicators and price.
Price had been making Higher Highs and Higher Lows whilst the Oscillating indicators are showing lower highs.
Chart below:
All this means for now is that the uptrend may be running out of steam.
What I need is price to break a support level and show me that the pull back is on.
Therefore if price can break down through 131.70 (red line on chart below)
Chart below:
I will enter a short position with 0.5% risk.
I will look to add to the position should it move into profit.
I will of course update you should I take the trade on and enter a position.
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