EUR/JPY Fell Back to 133.90, Bulls Looming In the Region

Good afternoon, traders.

The markets aren’t moving much as the investors are waiting for the monetary policy decision from the Bank of England. In the meantime, EUR/JPY has formed a really cool trade setup. Are you up for it?

EUR/JPY – Bullish Trendline

Looking at the daily chart, the Japanese cross has reached above 133.850, the solid support zone. The particular support is extended by the bullish trendline which is formed connecting the lows of Nov 23, Dec 15 and Feb 7.

EUR/JPY – Daily Chart

In the RSI, the pair is holding in the oversold region and today’s candle is likely to form an “inverted hammer”. If this happens, the odds of a bullish bounce back will be higher.

Support     Resistance

133.25       135.18

132.57       136.43

131.32       137.11

Key Trading Level:    134.5

EUR/JPY – Trading Plan

I will wait for today’s closing and will look to open a buy position if market manages to hold above 133.850 with a target of 135.500. Good luck!