EUR/JPY Stuck At Top – Can We Expect Profit Taking? - Forex News by FX Leaders

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!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of