EUR/JPY Technical Analysis: Short Held Amid Consolidation

• EUR/JPYTechnical Strategy: SHORT AT 135.25
• Support: 133.81, 132.04, 129.17
• Resistance:135.86, 137.64, 139.95

The Euro appears to have resumed its decline against the Japanese Yen as expected having overturned rising trend support set from late January. A daily close below the 14.6% Fibonacci expansion at 133.81 exposes the 23.6% level at 132.04. Alternatively, a reversal above trend line support-turned-resistance at 135.86 opens the door for a test of the 136.68-137.64 area marked by the February 12 high and the 38.2% Fib retracement.

We sold EUR/JPY at 135.25, initially targeting 133.81. A stop-loss will be triggered on a daily close above 136.68.We will take profit on half of the trade and move the stop-loss to breakeven once the first objective is reached.