EMA Crossover in EUR/JPY – BOJ Weakens the Japanese Yen

Posted Tuesday, July 31, 2018 by
Arslan Butt • 1 min read

Looks like a nice call on EUR/JPY as our forex trading signal is heading in the right direction. Here’ s a quick update on our trading signal…

EUR/JPY – Fundamental Review

The Bank of Japan kept its policy steady as widely expected, leaving the interest rate at -0.10 %. The important news from the central bank is that it would make its policy structure more flexible for the long-term yield target. Although, it kept the interest rates on hold, the remarks are quite dovish. In a statement, it demonstrated that the yields may move up or down “to some extent mainly depending on developments in economic activity and prices.” As a result, the demand for the Japanese Yen is suffering.

EUR/JPY – EMA Bullish Crossover & Triple Top Breakout

On the 2 hour chart, the EUR/JPY has a bullish crossover on 100-periods MA and the same level (130) is now extending a significant support to the Japanese cross. The pair has also violated the triple top pattern which provided a strong resistance near 130.150.

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

Support Resistance
130.16 130.32
130.11 130.37
130.03 130.45
Key Trading Level: 130.24

EUR/JPY – Trading Idea

We are already in trade and our trading signal is aiming for 130.65 with a stop loss at breakeven at 130.04. 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
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments