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Talking Points:
- EUR/JPY Technical Strategy: Short at 137.12
- Support: 136.09-22, 134.91, 133.96
- Resistance:138.02, 138.80, 139.75
The Euro sank against the Japanese Yen as expected, with prices setting a new year-to-date low beneath the 136.00 figure. Near-term support remains in the 136.09-22 area, marked by the February 4 low and the 23.6% Fibonacci expansion. A break below that on a daily closing basis exposes the intersection of a falling channel floor and the 38.2% level at 134.91. Alternatively, a turn above 138.02 (August 1 high, channel top) clears the way for a test of the 38.2% Fibonacci retracement at 138.80.
We sold EURJPY at 137.12 and have since booked profit on half of the position. The rest remains open to capture any further downside momentum with a stop-loss at the breakeven level (137.12).
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
