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Talking Points:

• EUR/JPY Technical Strategy: Short at 135.25

• Support: 129.17, 126.86, 124.54

• Resistance:132.04, 133.81, 136.68

The Euro turned lower against the Japanese Yen as expected after putting in a bearish Evening Star candlestick pattern. Near-term support is in the 129.17-130.13 area (38.2% Fibonacci expansion, January 26 low), with a break below that on a daily closing basis exposing the 50% level at 126.86. Alternatively, a reversal back above the 23.6% Fib at 132.04 clears the way for a challenge of the 133.54-81 zone (14.6% Fib, January 20 low).

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

original source

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