Pick of the Day: EUR/JPY

The Euro has made a nice run up in the last few weeks against many pairs, not just the dollar. It looks like this run has been exhausted on the hourly chart as I have pointed out a head and shoulders pattern. You can even pick out a double top on the right side of the chart as well. Also, we have the 50 sma crossing down over the 100 sma, so we have a few technical indicators showing signs of weakening in the euro.

Japanese Household spending and industrial production reports will be released this evening. Consensus on both numbers are potentially worse than last years numbers, but better than the March release of the reports. So we may see the Yen strengthen against the Euro in the short term. I am looking to short EUR/JPY with a 10 pips close below 142.76. Please be cautious of the 200 sma as it is a strong support/resistance area.

Short EUR/JPY at 142.66, stop at 143.15 , pt1 at 142.50, pt2 at 142.00

Good luck and good trading!