EUR/JPY Knocked Us Out – Retail Sales Out & Inflation Awaited!

Euro begins the day bullish despite the unfavorable fundamentals. We shared a forex trading signal on EUR/JPY, but unfortunately, it did not get profit for us. Anyhow, that's what I'm looking to trade now…

German Retail Sales

Destatis just released the retail sale figures and as per provisional data turnover in retail trade missed forecast. It dropped sharply by 1.2% while it was forecasted to gain by 0.3%.

Are you wondering why Euro is getting stronger despite unfavorable data? It seems like investors are pricing in the positive inflation forecast. Settle down to trade CPI Flash Estimate y/y at 10:00 (GMT).

EURJPY – Bearish Trendline Retest

Fellows, check out this bearish trendline on the 4-hour timeframe of EUR/JPY. It's providing strong resistance to the pair at  133.250. Unfortunately, the high volatility knocked us out as our stop loss was at 133.300.

EUR/JPY – 4-Hour Chart – Playing With Trendline

Now, the leading indicator Stochastic is trading at 100. Seems like we should take another sell below $133.300 but this time with a stop loss on a bit higher side.

Support     Resistance

132.06       132.98

131.5         133.34

131.14       133.9

Key Trading Level:    132.42

EURJPY – Trading Plan

I'm placing to re-enter my sell position below 133.300 with a stop above 133.500 and take profit at 132.700 and 132.500. But I'm waiting for the more technical confirmations and CPI report. Stay tuned for more updates on it.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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