Today EUR/JPY hit an area of resistance around 137.45, forming a double top on the daily chart.  We've been predominantly in an uptrend over the last several months, so long term, I'm still bullish.  However, with the formation of the double top, now may be a good time for the pair to take a breather and retrace back to the rising trendline.  Of course, it could go ahead and just break through the resistance, in which case I think we'd see a decent move up.

So, in anticipation of either move, I'm going to straddle today's price action with a buy above today's high and a sell below the low.  Here are my orders.

• Long Entry:  137.506
• Initial Stoploss:  135.722

• Short Entry:  135.722
• Initial Stoploss:  137.506
  

I'm still bearish on the JPY, based on the recent daily charts of the various JPY crosses.  Tonight I've entered a long position in EUR/JPY.  Recent price action on the daily chart shows the pair bouncing off of the rising trendline on the daily chart at a level that has served as an area of support and resistance in the past.

Take a look at the daily chart below.  The red circles indicate some times in the past when this price level has been tested, both from above and from below.  The past couple of days seem to indicate that this area will hold as support and the pair will continue higher.