EUR/JPY: trade idea
- EUR/JPY broke support level 130.40
- Next sell target - 125.00
EUR/JPY last week broke strongly below the support level 130.40, which was set as the sell target in our previous report for this currency pair. The breakout of this support level coincided with the breakout of the 38.2% Fibonacci Correction of the previous sharp weekly upward impulse from November of 2012 (as you can see from the weekly EUR/JPY chart below). This double breakout intensified the bearish pressure on EUR/JPY – accelerating the active primary downward impulse wave ③ from February.
EUR/JPY is expected to fall further to the next sell target at the support level 125.00 (coinciding with the 50% Fibonacci retracement of the aforementioned weekly upward impulse from 2012). Sell stop-loss can be placed above 130.40.