Euro Cross Pick 07.14.10
The recent rally in the EUR/JPY failed to break above the June high (113.40) and looks to be holding the range from the previous month, and we may see the exchange rate fall back towards the lower bounds over the near-term following the shift in market sentiment. However, as the pair looks to be finding intraday support ahead of the 50-Day SMA at 112.02, I wait for a break below this level and look to the target the lows around 108.00. As a result, I have placed a short entry at 111.21, the 10-Day SMA, and will put a stop at 112.02, the 50-Day SMA.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.