EUR/JPY Technical Analysis: Short Trade Remains in Play
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- EUR/JPY Technical Strategy: Short at 135.25
- Support: 129.17, 126.86, 124.54
- Resistance:132.04, 133.81, 137.64
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 129.17-130.13 area (38.2% Fibonacci expansion, January 26 low) exposes the 50% level at 126.86. Alternatively, a turn above the 23.6% Fib at 132.04 opens the door for a test of the 133.54-81 zone (14.6% Fib, January 20 low).
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