EUR/JPY – Short Euro Trade is Cancelled Out

EUR/JPY (134.836)

Some points to consider in this Forex market:

• The Euro spikes higher as it sees it highest rise in over three weeks. The breakdown is now null and void.
• Bounce higher is merely corrective and will look for another short euro trade.
• Trade Strategy: Stand aside

The EUR/JPY has bounced sharply higher this week. Price action is now looking to challenge resistance levels above the key ¥134 level. The euro saw its largest daily gain in over three weeks. This makes the recent bearish move null and void. Please see the below EUR/JPY daily MT 4 chart for today’s technical analysis.

Technical Analysis

Let’s now look at today’s daily EUR/JPY technical analysis. A daily close above the technical resistance level lining up at 134.80 challenges the next technical resistance at 135.60. The alternative EUR/JPY technical analysis, should the euro reverse course and move lower, notes technical support lining up at 133.81. This is also a former resistance level. A break below here challenges the technical support located at 132.21.

Trade Strategy

Now let’s discuss today’s EUR/JPY trade strategy for today. I has hoped to enter a short euro trade at 133.10. Unfortunately, that did not pan out as this Forex market shot higher. However, the overall sentiment with the euro, and in the EUR/JPY Forex market, remains bearish in line with my overall weak euro outlook. I consider this bounce higher to be corrective in nature and will now stand aside for another short EUR opportunity to present itself. For today, I am flat in the EUR/JPY Forex market.