Video: EUR/JPY – Buyers Take Aim at the May High

Technical analysis for today: The EUR/JPY continues to push higher after four days of gains. The EUR/JPY now has near term resistance at the end of a congestion zone running from 136.94 to 137.25. The level at 137.25 is the May 18, 2015 top. A break above this level will challenge the technical resistance at 138.51. Should the euro move lower we have technical support at 136.25. A break below this level challenges the technical support at 134.67.

My trade strategy is a bit complicated. I know, from a technical standpoint, jumping in with a long EUR trade is compelling. However, look at the flattening RSI which suggests this rally could be losing some steam. Also there is event risk to consider. Greece. There is chance of a default in the days ahead which could send the euro on a rollercoaster. Also, there is our long term outlook on the euro which is bearish. All of this leads me to conclude, standing aside for now is probably the wisest option I have.