Pick of the Day: EUR/JPY

Today’s pick is on the EUR/JPY. The euro has been in a short term slide, but we’ve seen gains against many currencies in the past trading day. Currently, EUR/JPY is trending higher as it approaches the 147.50 level. On the daily chart, this was an area of previous resistance, so it looks like an area to short the pair. Also, we see that the R1 pivot line is also lining up with this area, confirming a high probability trade. I would be cautious at around 1:00 am EST as the minutes to the latest Bank of Japan Monetary policy meeting will be released, but it’s most likely we won’t see anything different than from what was stated during the interest rate hike.

Short EUR/JPY at 147.50, stop at 147.80, pt1 at 147.20, pt2 at 146.95