EUR crosses/Technical Analysis

EUR/JPY: Technically still prefer the sell-big-rally play

The daily chart completed a nice 5-wave pattern from 111.40 to 94.10 and we look to be in retracement mode currently. I prefer selling another failure at 103.80 or if that level breaks, wait for a top to form on the short-term charts near 104.80 and then start building shorts from there.

The market seems to be slipping into risk-off mode and in that scenario I would expect the JPY to out-perform the EUR.

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