EUR/JPY Technical Analysis: Selloff Pauses Above 133.00

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Talking Points:

• EUR/JPY Technical Strategy: Short at 135.25
• Support: 133.54, 132.04, 129.17
• Resistance:137.64, 139.95, 142.27

The Euro is digesting losses having declined as expected against the Japanese Yen after snapping the uptrend in play since early January. A daily close below the 133.54-81 area marked by 14.6% Fibonacci expansion and the January 20 low exposes the 23.6% level at 132.04. Alternatively, a reversal above the 136.25-137.64 zone (trend line support-turned-resistance, February 12 high, 38.2% Fib retracement) opens the door for a test of the 50% threshold at 139.95.

We sold EURJPY at 135.25 and subsequently booked profits on half of the position. The remainder of the position remains open to capture any further downward momentum. The stop-loss has been trailed to the breakeven level (135.25).

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com