Pick of the Day: EUR/JPY

After the weak US consumer confidence number and concerns from the FOMC on the housing market, traders sold of the dollar and piled into the euro. We watched today as the euro rose in value in all of its crosses, but is the short-term move exhausted? I think so, and maybe we can catch a few pips from it. If EUR/JPY continues to rise, I like a short at 150.00 for a couple of reasons. We have the R1 line at 150.08 and the stochastic is showing a slightly over bought market. Also, big players in the market tend to put orders at levels ending with double “00′s” – like 150.00. So, we have a high probability of seeing resistance in that area, and with the lack of news from the euro zone or Japan, the risk of a breakout against us is pretty low.

Short EUR/JPY at 150.00, stop at 150.20, pt1 at 149.80, pt2 at 149.55

Short EUR/JPY at 149.50, stop at 149.70, pt1 at 149.25, pt2 at 149.00

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