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EUR/JPY Regains 130.850 Region – Risk on Sentiment In Play

The safe haven currency Japanese yen is facing a headwind as trade war tensions between the U.S. and China were put on hold. Since we don’t have much to see on the economic calendar, it will be nice to trade the technical setup on EUR/JPY. Are you up for it?

Risk on Sentiment

The remarks from the U.S. Treasury Secretary Steven Mnuchin has reduced the uncertainty over the trade war. As a result, the investors have started moving their investments from the safe haven assets to the risky investments such as the stock market. The Japanese yen carries a status of safe haven currency which is why we are seeing a sell-off in it.

EUR/JPY – Asymmetric Triangle Pattern

Technically speaking, the EUR/JPY is consolidating in an asymmetric triangle pattern which is supporting the pair near 130.560 along with a resistance at 130.850. As per 50- period EMA, the EUR/JPY is trading a bullish trend and that’s why we should be looking for bullish trades. Moreover, the RSI is also holding above 50, supporting the bullish bias of investors.

EUR/JPY - 2 Hour Chart

Support  Resistance

130.06        131
129.67        131.55
129.12        131.94
Key Trading Level: 130.61

EUR/JPY – Trading Plan

Fellows, I’m looking to share a forex trading signal to go long on EUR/JPY above 130.600 with a stop below 130.350 and take profit of 131.150. Good luck!

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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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