EUR/JPY Stuck At Top – Can We Expect Profit Taking?

Due to weakness in the dollar, investors moved their focus to the Euro which made the EUR/JPY bullish. Now it seems like we have an opportunity to avail. Are you up for it?

EURJPY – Technical View 

I'm looking at the 4-hour chart where the leading indicator Stochastic is trading at 78. It's something which is signaling that bulls may leave the market to take profit.

EURJPY – 4-Hour Chart – Fibonacci Retracement

Due to this, I applied a Fibonacci Retracement. We can see the pair has already completed 23.6% retracement at 132.760 and now holding above it.

Historically, the oversold and overbought pairs have a higher tendency to go for 38.2% or 61.8% retracement levels. That's why I'm looking for a sell position below 132.700.

Support     Resistance

132.08        133.59

131.14        134.16

130.57        135.1

Key Trading Level:    132.65

EURJPY – Trading Plan

I'm placing a sell stop below 132.700 with a stop above 133.1 and take profit at 132.4 and 132.200. Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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