On Monday we highlighted EURJPY’s break above the 2009 high around 139.20 and how it opened the door to a further advance over the coming days. Interestingly, EURJPY was initially rebuffed by 140.00, which was our noted key psychological & barrier/option level.
However, after consolidating over the past few sessions the pair has once again found its legs – on the back of the better than expected US November employment report (NFP: +203K & Unemployment rate: 7.0%). As a result, EURJPY easily took out the key 140 level and has continued to ascend higher throughout the remainder of the session. Ultimately, this saw the JPY-cross reaching our highlighted 141.00 target – Convergence of the triangle objective and the 61.8% retracement of the 2007-12 decline.
Accordingly, with the triangle objective achieved and the longer-term 61.8% retracement met, it may be prudent to curtail our bullish EURJPY bias for now.
Read the full report: Market Talk