After failing to take out the April 6th high of 137.39, Euro Yen makes a lower swing high right at the 78.6% Fibo of the down move from 137.39 down to the April 28 low of 124.36.
After failing to take out the April 6th high of 137.39, Euro Yen makes a lower swing high right at the 78.6% Fibo of the down move from 137.39 down to the April 28 low of 124.36. This has created a down trend channel which could take the EUR/JPY down to the 123.00 neighborhood of trend line support. Look to sell rallies up to the 134.81, May 4th high with stops just above channel resistance. Limits should be at least 2:1 from entry with a maximum target of the lower trend line. See the attached chart:
