$/¥ USDJPY: Waiting for Confirmation to Get Long

Strategy: Long wait
USDJPY in a pattern of upward candlestick engulfing over 78.88 support, intervention on 4 August closing high, but prices have failed to overcome resistance trend line down the value of mid-March (now at 79.78) confirming a reversal on the rise of at hand. We will pursue on the side for the moment, pending this barrier to be violated on a daily basis of closure, before attempting a long position.

€ EURUSD: Topping Pattern Awaits Confirmation

 Strategy: Short at 1.3073 (Avg), Targeting 1.2864
Floating Profit / Loss: -89 pips
We initially sold EURUSD at 1.3121 and added to the position at 1.3026. The pair continues to trace out a choppy Head and Shoulders topping chart formation, with a daily close below neckline support at 1.3025 confirming the setup. The appearance of a bullish Piercing Line candlestick pattern warns an upswing may be ahead however, with initial resistance marked by a falling trend line now at 1.3303. We will remain short for now, maintaining an initial downside objective at 1.2864. A stop-loss will be activated on a daily close above 1.3378.