EUR/JPY Sitting Quietly at 132.900 – Breakout Setup in Focus
Arslan Butt • 1 min read
Our position on the EUR/JPY is in-and-out of profit as the market lacks volatility in the absence of major fundamentals. However, there’s a nice technical setup, which is worth trading. Take a look…
EUR/JPY – Ascending Triangle Breakout
Looking at the hourly chart, the Japanese cross, the EUR/JPY, faced a strong hurdle at 132.850 along with support near 132.700. Looking at the charts, we can see that the EUR/JPY has already broken above the resistance level of 132.850. But at the same time, the pair has entered the overbought zone. Bear in mind that ascending triangle patterns usually break upward (Check out FX Leaders’ Triangle Strategies here for some handy information).
EUR/JPY – Hourly Chart – Triangle Breakout
I’m in a bullish trade, but the doji candles above the resistance at 132.850 are grabbing my attention. Anyways, the 50-period EMA will be there to support the exchange rate above 132.750. Since there’s no economic event which can directly impact the EUR/JPY, we can expect the market to trade according to the technical levels.
EUR/JPY – Trading Plan
During the European open, we opened a forex trading signal to buy EUR/JPY above 132.850 with a stop below 132.600 and a take profit of 132.450. Let’s wait for take profit. Good luck!