The EUR/JPY broke from the triangle consolidation pattern at about 11:00 p.m. ET to a 142.98 high, then retraced to the 142.75 breakout point, which then triggered our long entries.  The EUR/JPY moved to a 143.77 high throughout the Eurozone and London trading putting as much as 100 points in our pocket before coming to a rest in the form of the current consolidation pattern. The daily chart shows the combination of Fib and trendline resistance levels producing the 143.80-144.00 target.

A closer look on the 4-hour and 13-minute chart shows our entry parameters. Look to sell into the 1.272 Fib extension at 143.90, as well as the 1.618 Fib extension at 144.05 with stops over 144.25. The initial target will be the 143.30 consolidation lows at which time you could look to book partial profits and trail the stop loss to breakeven.

The dollar weakness beginning in London last night has carried through with a vengeance to a 1.2850 New York EUR/USD high. A confirmed break from 1.2855 will invalidate our 1.2600 target and confirm the symmetry as compared to the April pullback totaling 269 points. The current pullback from 1.2975 to 1.2702 totaled 273 points, and a break from the current resistance at 1.2855 will confirm the symmetrical pair of bull flags. The next target will be 1.3000.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.