The EUR/JPY received renewed selling pressure after the dovish remarks from the ECB President Draghi. If you recall our March 14 – Economic Event report, it wasn’t that difficult to predict Mario Draghi’s sentiments. He said the central bank requires more evidence that inflation is approaching the bank’s target. Consequently, the Euro is heading south. Who’s ready to trade?

Technically speaking, the EUR/JPY is trading bearish. Take a look at the hourly chart, the pair has come out of the descending triangle pattern, breaking the support level of 131.950.

EUR/JPY – Hourly Chart

Taking a sell position here would be a good idea, but it’s always risky to trade until the speeches and press conferences are over. So far, the market is trading at 131.750 and it’s likely to retrace back below 131.950.

EUR/JPY – Trading Idea

Wait for a retracement until 131.950 and take a sell position below this level. The stop should be above 132.250 with a profit at 131.650.

Good luck!