EUR/JPY Stuck At Top – Can We Expect Profit Taking?
Arslan Butt • 1 min read
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.
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!