Wait To Trade The Breakout in EURJPY! - Forex News by FX Leaders

Wait To Trade The Breakout in EURJPY!

Posted Thursday, November 23, 2017 by
Arslan Butt • 1 min read

Forex crosses remained intact from the Federal Open Market Committee spillover. To be on the safer side, the investors traded forex crosses to avoid unpredictable fluctuations in the market. At the moment, the EURJPY has a good opportunity for us. Are you up for another trade?

 

EURJPY – Descending Triangle Pattern

The cross currency pair has stuck in the descending triangle pattern which is extending a solid support at $131.275 and resistance at $131.275.

EURJPY - 4 - Hour Chart - Descending Triangle PatternEURJPY – 4-Hour Chart – Descending Triangle Pattern

On the 4-hour chart, the blue line is representing the bearish trendline of the descending triangle pattern. Historically, the descending triangles tend to break downward. Yet, the RSI and Stochastics are diverging with a sell signal.

 

Support     Resistance

131.27        131.89

131.04        132.28

130.65        132.51

Key Trading Level:    131.66

 

EURJPY – Trading Plan

We have two options:

Sell Limit – Put a sell limit at $132.250 with a stop above $132.450 and a take profit at $131.350.

Sell Stop – Place a sell stop below $131.150 with a stop above $131.450 and a take profit at $130.750.

Good luck!

 
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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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