Bullish EMA Crossover in EUR/JPY – Is It Time To Go Long? - Forex News by FX Leaders
U.S. Inflation Report Awaited

Bullish EMA Crossover in EUR/JPY – Is It Time To Go Long?

Posted Thursday, May 31, 2018 by
Arslan Butt • 1 min read

It was a nice call on EUR/JPY, as our forex trading signal closed at 127.7 and that’s exactly the level where Japanese cross took a U-turn. Thanks to European CPI flash estimate. Well, I’m not done yet. We may have another position in EUR/JPY during the U.S. session today. So, better be ready…

EUR/JPY – Fundamental Review

The European CPI flash estimate figure rose to 1.9% upbeating the analyst forecast of 1.6% and the previous inflation figure of 1.2%. I think it’s strong enough to encourage investors to hold their long-term positions in the single currency Euro. In fact, economic events like this are needed to get us nice retracement on the EUR/USD weekly chart, especially above $1.1500.

EUR/JPY – EMA Bullish Crossover

On the 2 hour chart, the EUR/JPY has a bullish crossover on 50-period EMA and the same level (127) is now extending a significant support to the Japanese cross.

EUR/JPY - 2 Hour Chat

EUR/JPY – 2 Hour Chat

The RSI and Stochastics are in the overbought zone on the 2-hour timeframe, but we still have enough room for buying them in bigger timeframes like daily and weekly. Here’s a quick summary of support and resistance levels.

Support    Resistance

125.52         127.34
124.96        127.9
124.05        128.81

Key Trading Level: 126.43

EUR/JPY – Potential Forex Trading Signal

I will be looking for another buying trade above 127 with a stop loss below 126.600 and take profit above 127.700. All the best!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of