EUR/JPY printed fresh 8-year highs last night on the move above 159.61. Further, all of the EUR/JPY losses following the late-February equity, carry trade meltdown have been regained and then some. I couldn't forgive myself if this market continued higher without us first taking a shot at it.

There are two strong Fib targets above us at 160.76 and 162.01 that will serve as our focus levels. The key 159.61 level mentioned above will serve as the pivot point to formulate our entry plan. There are likely to be plenty of outstanding short positions in the market that were established on the approach of that late February 159.61 high. When those shorts decide to hit the eject button, combined with the new buying interest from the breakout/momentum traders, EUR/JPY should have no problem testing 161.00.



For tonight, we're going to lean against this 159.61 breakout level to get long EUR/JPY. My limits to get long are at 159.75, 159.65, and 159.55 with 159.45 stops. A move up to 160.75-161.10 will complete wave iii in blue, which then brings corrective wave iv down in 3 waves. So if our targets at 161.00 area are met, be sure to tighten up those stops on any remaining position.



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

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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.