Video: EUR/JPY – Short Trade Now in Play

Three points to consider:

• The euro looks to extend losses after its break below a key support level.
• Short trade now in play. I am targeting below the key ¥132 handle
• Trade Strategy: Short euro @ 133.12. Initial target 131.25.

The EUR/JPY Forex markets is getting ready to move significantly lower. This comes after the euro broke through a rising trend line in play since mid-May. Prices are looking to target the handle at ¥132.

Technical Analysis

Let’s look at today’s EUR/JPY technical analysis. There is near term support lining up at 131.25. A daily close below this area challenges the next technical support lining up at 129.40. The alternative EUR/JPY technical analysis, should the euro turn higher, thus supporting this Forex market, notes a cluster zone that ends at the May 25 close. This area is from 133.08 to 133.41. A break above this level challenges the next technical resistance lining up at 134.19/20.

Trade Strategy

Now let’s discus the trade strategy for the EUR/JPY Forex market. Price action, and the risk to reward perspective looks attractive. With this in mind, I will now enter a short euro trade at 133.12. The initial target is at 131.25. I will put my stop loss to go active if the euro pushes through 133.41. Once I book profits on 50 percent of this short euro trade, I will move the stop loss to break even to capture further downside profit in this trade. Today’s trade strategy in the EUR/JPY Forex market is short at 133.12.