This pair looks to be basing after (like USD/JPY) the false break of its 200 day moving average. A break of 138.00 proved elusive and we have since retraced much of the move below 140.00 support.

Whether or not EUR/JPY can retake 140.00 will likely determine the next trend. Bears will be selling an approach with a stop above, while bulls will be salivating at the prospect of a decent short squeeze.

So much will depend on events and data later in the week but it’s one to store away.