# EUR/JPY Selloff to Resume (November 4, 2013)

Source: https://www.tradersway.com/resources/market-info/eur-jpy-selloff-to-resume-november-4-2013/
Language: en
Updated: 2013-11-04

EUR/JPY suffered a heavy selloff starting Thursday last week when ECB officials hinted that a rate cut is in the cards. EUR/JPY dropped from the 135.50 area by close to 300 pips before making a quick bounce at the start of this trading week.



Sentiment remains very bearish for this pair but a retracement might take place before sellers push the pair lower. If that’s the case, EUR/JPY could pull back to the 38.2% Fib, which is in line with a former support level. It is also an area of interest, which means it could act as resistance from now on.



![EUR/JPY Selloff to Resume (November 4, 2013)]



Stochastic is pointing down, suggesting that selling pressure is still strong. Shorting at 133.60 with a stop above the 134.00 mark and a target of new lows could make a good return on risk for a swing trade.



*By Kate Curtis from Trader’s Way*