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Talking Points:
- EUR/JPY Technical Strategy: Short at 135.25
- Support: 132.04, 129.17, 126.86
- Resistance:133.81, 137.64, 139.95
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 23.6% Fibonacci expansionat 132.04 exposes the 129.17-130.13 area (38.2% level, January 26 low). Alternatively, a turn back above the 133.54-81 zone (14.6% Fib, January 20 low) opens the door for a test of the 136.68-137.64 region (trend line support-turned-resistance, February 12 high, 38.2% Fib retracement).
We entered short EURJPY at 135.25 and subsequently booked profits on half of the position. The rest of the trade remains open to capture any further downside. The stop-loss has been adjusted 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
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