Buy on a level breakthrough of 125.00 with 125.77 target. Stop loss = 124.50.
Reason for the trading strategy
The substantial correction in the euro against the dollar has allowed the EURJPY pair to approach the level of 125. The improved macro-economic statistics in the Eurozone (reduction in unemployment, growth in retail sales and in the PMI) supports the euro. The main problem is the development of deflation processes in the region. The pair may test the level of 125.77 in the short term, and it may fall below the 122.07 level in the medium term due to a likely expansion of the quantitative easing program in the Eurozone.
EURJPY, H4
