EUR/JPY is moving higher for us from a 148.49 entry after a downtrend line break, and a 148.55 long entry at the 50% retracement level that was tested twice. The initial target is the symmetrical AB=CD projected move at 149.00, and above this is the .500 retracement level of 149.45 on the 240-minute chart shown below.

EUR/JPY and USD/JPY have been moving quite well in relation to each other lately. This strength is merely corrective before the longer-term downtrend reasserts itself. Look for EUR/JPY and USD/JPY to climb into our target resistance zones before opening short positions in USD/JPY alone. Referring to the 240-minute USD/JPY chart below, look to get short a half position at 116.55, and the other half at 116.75, with a stop for both just above the 117 figure level. This trade could setup to be 3 to 4 day holding, so if we do get triggered, don't be too quick to take profit.

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.