During my video review of the Thursday 11 October New York morning trading session, I described the case for a EUR/JPY long position starting with an entry at or near the 101.40 level following a US news report showing the lowest level of initial jobless claims since the first quarter of 2008 [1Q08]. As it turned out, that particular trade merely caught the tail end of a bigger move which had begun near the start of the London session. The greater euro yen move on that day is the subject of my Trade of the Week (TOTW) post for the second trading week of 4Q12.

The EUR/JPY price bounced up from its daily M1 pivot point (noted by the blue circle in the lower left hand portion of the chart below) during the early part of Thursday's Asian trading session. The pair stalled again at the same support pivot during the hour prior to the London open. FX traders seeking to buy the pair in the 100.15 to 100.25 area had opportunities to do so both before and after the start of the European trading day.

As I mentioned in Thursday's video, broad weakness in Japan's currency accompanied reports that Japanese mobile carrier Softbank was actively seeking to buy US wireless carrier Sprint Nextel. The weekly central pivot point near the 101.70 level offered a logical profit target for traders whose plan called for exiting the position before the London close.

Got your own pick for TOTW? Post it in the comment section!

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Curt Wehrley
Twitter: @fxcoachcurt
FX Strategist & Trader Coach
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