Looks like the pullback in the JPY-based pairs today may have put a capper on the recent run after a very impressive rally.
USD/JPY came quite close to our 102 target from the double-bottom pattern identified some weeks ago when the buck broke above 94.65. Sean has been advising for weeks to play 92/102 and boy has he been spot-on.
EUR/JPY rejected the 200-day moving average this morning at 137.00 and looks like it has put a durable top in place for the days ahead. Confirmation from the related asset markets like stocks and commodities helps firm up that view.
We had a very nice rally in all these markets in recent weeks but it is time for some serious backing and filling. The easy money has been made; now comes the hard part.
EUR/JPY is licking its wounds at 134.85 while USD/JPY looks to be a better bet, if still looking to be short JPY, at 100.75.
