It’s been a good day so far with a couple of take profits in GBP/USD and EUR/GBP . For now, we are looking to take a position in EUR/JPY as the Japanese cross has formed a pretty nice trade setup.

Lately, the Bank of Japan Governor Haruhiko Kuroda announced that the central bank is set to ramp up stimulus if sharp increase in JPY hurt the economy. Japan is still looking to achieve its 2 percent inflation target.

• As you can see on the 4-hour chart, the EUR/JPY is facing a solid resistance at 125.900.
• The trading level 125.900 also worked as a hurdle back on February 4. This makes it a double top trading level.
• We got two candles including bearish engulfing and doji, and both are closed right below a strong resistance level of 125.900 making it even stronger.

EUR/JPY – Trade Idea
Consider selling below 125.900 with a stop loss above 126.250 with a take profit around 125.300.

Good luck!