Coleman: Broken yen yields

With the Yen on the defensive and falling dramatically against a basket of currencies, including the Euro. Ian Coleman from First 4 Trading is looking to sell EURJPY, as he expects further gains for the currency to be limited.

After two straight days of positive gains the EURJPY has stalled at JPY 142.31. Ian notes that this level is also the 61.8 percent pullback level, a key performance indicator. Further technical analysis shows that gains may be limited for the euro. On Monday, an Evening Doji Star formed on the one hour chart which, according to Ian, can be interpreted as a signal of exhausted bullish momentum. With technical evidence signaling a decline, Ian has placed a call to Sell the EURJPY. 

He is looking to Sell at the market open and then again at the JPY 142.60 level. His targets for the trade display a high amount of risk-reward at JPY 141.61 and JPY 141.14. A Stop can be placed at JPY 142.75.

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