Daily HFT Trade Setup – EURJPY Reverses at HFT Sell Zone on FOMC Day
This morning's high frequency trading algorithms' activity shows that the EURJPY pair may be a good shorting opportunity for the current session.
Earlier, EURJPY reached the light HFT selling pressure zone that is located at 128.47 and above. The bullish attempt was then soon reversed here and a bearish engulfing candle pattern has formed on the 1-hour timeframe. This is accompanied by overbought levels, as indicated by the advanced FxTR overbought/oversold indicator (chart shown below).
Furthermore, the EURJPY cross should be sheltered from any direct impact stemming from the Fed meeting tonight, as opposed to pairs such as e.g., EURUSD or USDJPY, which will be impacted more by two-way USD volatility.
The light HFT buying pressure zone for EURJPY today is located at 127.77 and below.
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