EUR/JPY is 130.00 the Top?

For nearly the last month EUR/JPY has been stick at the 130.00 level and now the pair looks like it may be putting a long term top around that figure as upward momentum in euro appears to have stalled while USD/JPY remains vulnerable to further sell-offs.

Today euro failed to make fresh highs and actually reversed in North American trade to fall below the 1.1800 level. This may be the first sign that the single currency is running out of gas as the anti-dollar rally has hit a wall at these levels.

Meanwhile, USD/JPY has stabilized somewhat but remains vulnerable to further sell-offs especially if tomorrow’s ADP report prints worse than expected and sends the pair below the 110.00 level for good. All of this suggests that EUR/JPY may have peaked for now and that a correction to 128.00 is due over the next few days.