EURJPY – In line with our sell call yesterday, losses from 1.0389, the 4 month high, were extended and EURJPY posted the 1st negative day in the last 7 trading days. News overnight that the BOJ is to expand its asset purchase fund has seen a spike higher in all JPY crosses. Technically, this is seen as a correction with a larger move to the downside expected. The first true area of support is 101.85-101.79, reverse trendline and Fridays Marabuzo. Risk/reward is good so our call today is baerish below a stop of 103.90.
The profit targets are 102.83, todays open, then 102.40 and 101.85-79.
The risk however would be with buying through a stop of 103.90, a break of the 4 month high.