EUR/JPY is of course made up of two component parts, USD/JPY and EUR/USD, and these are known as the ‘legs’. You may also hear terminology such as ‘legging in’ and ‘legging out’ of a cross pair, which simply means creating a cross position by opening one of the legs first and the other at a later time.
USD/JPY looks like its trying to form an interim top at 84.15 and EUR/USD is in a sideways trading range with a top at 1.3325. Multiplying these two together gives us a EUR/JPY cross rate at 112.13. Whilst both these resistance levels are in place, selling rallies into the high 111’s makes good risk-reward sense to me. The short term base in the cross is near 109.00 so playing this broad 109/112 range makes sense also.
