EUR/JPY is trading at 125.35 today
Analyst at Mitsubishi UFG recommends selling EUR/JPY with a target of 122.80 and a stop at 127.20 in their weekly FX pick.
"We are recommending a short EUR/JPY trade idea. The pair has just put in place a double top at 126.75. President Abe's decision to resign has introduced fresh uncertainty over the sustainability of Abenomics policies. The uncertainty is unlikely to go away in the near-term," MUFG notes.
"We prefer to put on the long JPY position against the EUR where long positions are already elevated thereby increasing the risk of a squeeze. Recent EUR price action has also been poor," they add.
