EUR/JPY Touches The Session High Over European News
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
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!