More chatter from the jungle drums is that spec traders and models have been selling into EUR/JPY with the specs liquidating their longs. Tech funds were selling the break below 142.08 and the large number of spec longs maybe getting nervous over any more wobbles in stocks.
Timing, as we know, is a massive part of trading, not only for getting in but getting out. If the hordes of longs don’t see a sustained push to the upside then thoughts start to turn to whether a market is at a top. That can get some looking to lock in profits and others switching to thoughts of taking profit.
EUR/JPY sees daily support coming in at 141.41 and weekly at 141.20. Further daily support is at 140.80 before stronger at 140.45 and we have the 200 h4 ma at this level also.
We’ve done nearly 1350 pips since November so we maybe should expect some pull back. We’re around 360 pips off the highs so anywhere around the 140 mark will likely see the dip buyers returning in strength.
EUR/JPY weekly chart 07 01 2014