EURJPY is a cross pair know for its huge volatile move it is most active on Asian and European sessions. Short term trading analysis (tips) for EUR/JPY 4 July 2011, we recommend, Enter short in EURJPY below 117.15 for short term target of 116.15 and 115.15 also place protective stop loss above 117.75.
Reason to trade EURJPY short: The EURJPY was on uptrend but we seeing some selling due to selling in euro in short term and this being a very good selling opportunity due to weak EURO. EURO has been showing some mild weakness and is more likely to continue the current weakness to test its next support level of 116.15. RSI support the down move and is in favor of the trade on weekly chart. So we can see the pair to weaken further and move towards its next support level which is at 116.15, so trading in the direction of the trend we recommend to trade short on EURJPY pair. This can be a solid trading opportunity for the traders trading in the weekly time frame.