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

Posted Monday, November 27, 2017 by
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 RetracementEURJPY – 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!

 
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