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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 turned lower against the Japanese Yen as expected after putting in a bearish Evening Star candlestick pattern. Near-term support is at 132.04, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 129.17-130.13 area (38.2% level, January 26 low). Alternatively, a reversal back above the 133.54-81 zone (14.6% Fib, January 20 low) clears the way for a challenge 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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