Barclays went short on EUR/JPY
Tactical investors should consider selling EUR/JPY this week, strategists at Barclays Capital advice. Barclays has already went short on the pair right ahead of the last week's ECB meeting.
"We recommend being short EUR/JPY with a target of 133.50. Despite the EUR’s resilience around the ECB meeting, we believe the elements are now in place for a structural move lower in the currency, while the JPY is relatively close to finding a bottom versus USD," analysts explain.
"Technical strategy is also bearish EUR/JPY. Following a succession of downside breakouts, we are now looking for a close below 138.60, the 200-day average to signal that downside traction is taking hold. Our initial downside targets are toward 136.20. Beyond there would signal a deeper fall toward 133.50, the top of the monthly cloud," Barclays predicts.