Get Ready to Trade EUR/JPY as this Tug of War is Coming to an End.

Looking at the 4-hour chart, the Japanese cross EUR/JPY is facing a strong resistance up at 133.250 along with a support near 133...

EUR/JPY - 4 Hour Chart

The EUR/JPY is stuck in a narrow trading range of 133 – 133.250 in the wake of a weaker euro (and yen). That’s right, both of these currencies lack demand. Investors are feeling hesitant to buy the euro before the ECB meeting. Whereas, the risk-on sentiment is driving yen sellers. But the tug of war between the bulls and bears is going to finish today with the release of the European monetary policy.

EUR/JPY – Descending Triangle Breakout

Looking at the 4-hour chart, the Japanese cross, the EUR/JPY, is facing strong resistance up at 133.250 along with support near 133 (double bottom pattern). Zooming out on the chart, it clearly looks like a small descending triangle pattern which is struggling to break downward. Is it going to break now or on the news? I can’t say much about it but it surely is a hot trading setup.

EUR/JPY - 4 Hour Chart

 

 

The RSI and stochastics have started coming out of the overbought territory, which is signaling the potential for a further retracement. By the way, Yuppy has already completed a 23.6% Fibonacci retracement at 133 and the 38.2% level prevails at 132.85. Check out the trade plan below…

EUR/JPY – Trading Plan

Although it’s preferred not to take a position until the release of the ECB’s monetary policy decision, the rough idea is to take a sell position bellow 132.95 to target 132.75 and 132.55. On the flip side, buying is preferred above 133.280 with a target of 133.650. Refer to April -26 Economic Event Brief for handy information on the ECB’s meeting & expectations. Good luck!

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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