EURJPY—potential sell

There's an energetic rally going on in many pairs right now but a look at the daily EURJPY chart shows it's near resistance thus hinting at a potential short around 114.74. It may only correct but it's not unreasonable to think 1.0986 (50% of the most recent move up) would hold which would make for a nice profit from a short. If it breaks decisively through the 114.74 resistance then there isn't much real resistance before 119.62 so you want a tight stop on any short with probably a stop and reverse.

Here's the daily chart:











© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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