EUR/JPY Touches The Session High Over European News - Forex News by FX Leaders

EUR/JPY Touches The Session High Over European News

Posted Tuesday, February 6, 2018 by
Arslan Butt • 1 min read

Earlier today, we talked about the risk-off sentiment and safe-haven appeal which dragged the Japanese crosses to sessions low. But the Euro strengthened losses on the release of better than expected German Factory Orders which released at 3.8% and upbeats the 0.6% forecast. We may have a trade setup in the cross pair now.

EURJPY – 61.8% Fibo Retracement

Fellows, on the hourly chart, the EUR/JPY has completed 61.8% retracement at 135.750. The bulls appeared in the market after the news release from the Eurozone.

EUR/JPY - Hourly Chart

EUR/JPY – Hourly Chart

Now we are likely to see fade-out. It means the bulls can take profit in the pair. Especially, those who entered the position on the news. The Stochastic is holding in the overbought zone (above 80) and signaling that there no more room for buyers until the pair retraces back. Moreover, the 50- period EMA is also supporting the selling trend.

The immediate support prevails at 135.100 and 134.650. While the resistance can be found near 135.850.

EURJPY – Trading Plan

Fellas, the trade idea is to stay bearish below 135.75 with a stop above 136 and take profit of 134.65. 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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