EUR/JPY Soars over German Retail Sales – Good Time to Go Short
Arslan Butt • 1 min read
The single currency euro gained support on the back of surprising rise in the German Retail Sales. The rise of 2.3% amazed the investors as they expected a rise by just 0.5%. So, do we have an opportunity here?
EUR/JPY – Fundamental Review
Just half an hour ago, the Eurozone released a number of medium impact economic figures which includes the German retail sales, French prelim GDP, Spanish flash CPI and German unemployment change. I must say, the data is totally mixed. Half of the indicators are negative. While the other half is signaling a bullishness in the Euro.
The Destatis is still due to release the German inflation figure which is the most important. It’s forecasted to rise by 0.3% vs. 0.0 beforehand.
EUR/JPY – Double Top & EMA Resistance
At the moment, the EUR/JPY is heading north and likely to face a resistance near 126.250. The Doji candle below 50- periods EMA is signaling a neutral stance of investors. The 126.250 is also a double top pattern and as we know this type of pattern is known for bearish reversals. Therefore, we opened a forex trading signal to short EUR/JPY below 126.250 to target 125.750.
Key Trading Level: 125.63
In contrast, the violation of upper boundary (126.250) can lead it towards 126.700 and 127.250. Let’s wait for German CPI and all the best!