EURJPY appears overbought

EURJPY appears overbought for FX:EURJPY by FXCM

EURJPY appears overbought



The Congestion Opportunities Strategy has just bought EURJPY at 124.623. The system recommends entering this trade at any price between 124.452 and 124.794. The signal was issued because the 28-hour Relative Strength Index indicates that the EURJPY may be overbought, while the Speculative Sentiment Index reading of 1.456 indicates that trader sentiment is not at extremes.The 14-period Average True Range on a daily chart is 0.686, so the stop loss has been set at 123.937. This stop loss order is a trailing stop that will move up as the market moves up. There is no profit target for this strategy. We expect to be closed by the stop loss.Congestion Opportunities is a range trading strategy that aims to sell overbought currency pairs and to buy oversold currency pairs. The strategy will only trade when the Speculative Sentiment Index for that currency pair is between -1.5 and +1.5. Limiting range trading in this way has shown in the past to significantly raise the probability of successful range trades.

Signal ID: 73018
Time Issued: Friday, 21 August 2020 09:00:16 GMT
Status: open
Entry: 124.452 – 124.794
Limit: N/A
Stop Loss: 123.937

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients’ best interests and represent their views without misleading, deceiving, or otherwise impairing the clients’ ability to make informed investment decisions. For more information about the FXCM’s internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms’ Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance is not an indicator of future results.

THE ULTIMATE TRADING EXPERIENCE