Day four: our EUR/JPY trade

The pair extended its gains through US trade and rallied to its highest since June 2009 and coming within striking distance of my 139 target.

EUR/JPY printed a high of 138.84, but has since pulled back in Asia to 138.50. I will now trail stops on the trade to 137.70 which is comfortably below psychological support at 138.  

It’s a fairly busy day ahead on the European economic calendar with German import prices, CPI and jobs numbers due out. Meanwhile the European Commission will release its economic sentiment survey for November.   All these releases have the potential to cause volatility for the single currency and the pair. Tomorrow we have CPI data out Japan to look out for and I will update the trade idea following this.

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