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Talking Points:
– EUR/JPY Technical Strategy: Short at 135.25
– Support: 132.04, 129.17, 129.86
– Resistance: 133.81, 136.68, 137.64
The Euro has turned lower against the Japanese Yen, with prices potentially heading towards the 132.00 level. Immediate support lies at 132.04, the 23.6% Fibonacci expansion, and a break below that could expose the 38.2% level at 129.17. On the other hand, a move above the 14.6% Fib at 133.81 could pave the way for a challenge of the 136.06-68 area trend line support-turned-resistance and the February 11 high.
We entered a short position on EURJPY at 135.25, with the trade reaching its initial target of 133.81. Half of the position has been closed for profit, while the rest remains open to capture further downside potential. The stop-loss has been adjusted to the breakeven level of 135.25.
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Daily Chart – Created Using FXCM Marketscope
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends influencing the global currency markets. Learn forex trading with a free practice account and trading charts from FXCM.