If you’re looking to buy a dip in EUR/JPY, we are getting close to an area with a confluence of supporting factors.
We’ve got the 10-day moving average at 131.80, the 38.2% retracement of the 127/134.75 rally at 131.80 and daily lows around 131.60/70. The 131.80 region looks like a fair spot to get long with a tight stop below 131.50 fro a rebound toward the 134.50/135.00 area. If you are a reflation-trade believer, this looks like a solid risk/reward play.
