EURJPY Closed In Profit – Buckle Up for Next Entry

What's up, fellas. Our forex trading signal on Gold and EURJPY gave us a nice start of a week as both of them closed at profit. If you missed the trade, do check our previous update Oct. 16 – A Potential Trade Setup In Gold. Let's take a quick look at EURJPY chart to identify another opportunity.

Technical Overview – EURJPY

EURJPY is trending lower as the global financial markets are considering the risk of further sanctions on Iraq from the United States. That's why the safe haven currency Japanese Yen is gaining more demand.

EURJPY – 4 – Hour – Support Zones 

On the 4- hour chart, we can see the Red Zone near $131.650, that's the area where I'm expecting the EURJPY to reverse back.  The leading indicators such as RSI and Stochastics are in the overbought zone. Which means a bullish reversal is quite possible in this red zone.

Support       Resistance

132.11          132.72    

131.92          132.91

131.62          133.22

Key Trading Level:    132.42     

EURJPY – Trading Plan

Fellas, the idea is to stay in buying above $131.650 and $131.250 with a stop below $130.750 in order to target $132.25. It will be rational to use small trading volume for this position. Good luck!