EUR / JPY is trading today at 125.35
Mitsubishi analyst UFG recommends selling EUR / JPY with a target of 122.80 and a stop at 127.20 in their weekly currency choice.
“We recommend a short EUR / JPY trade idea. The pair has just set up a double top at 126.75. President Abe’s decision to step down has introduced new uncertainty over the sustainability of Abenomics’ policies. should not go away in the short term, ”notes MUFG.
“We prefer to go long JPY against the EUR where long positions are already high, thus increasing the risk of squeezing. Recent price action on the euro has also been poor,” they add.