The Euro began to rise against the Japanese Yen as expected having formed a bullish Piercing Line candlestick pattern. A break above 139.83, the 38.2% Fibonacci retracement has exposed the 50% level at 140.95, with a further push beyond that eyeing the 61.8% Fib at 142.07. Alternatively, a turn back below 139.83 targets the 23.6% retracement at 138.245.
Assuming a risk/reward ratio of no less than 1:1, a long position triggered no lower than 140.39 with an initial target of 140.95 and a stop on a close below 139.83 would be acceptable. Our fundamental outlook warns against being long the Euro however and we will opt to pass on this opportunity.