EUR/JPY Bouncing Above The Support – More Sell-off in Store?

Posted Thursday, August 9, 2018 by
Arslan Butt • 1 min read

The safe-haven currency JPY plunged broadly for an obvious reason of concern among traders. Yes, I’m speaking about an uptick in geopolitical anxieties from the US-China trade war to Brexit. Anyway, we may have a trade opportunity in the EUR/JPY…

EUR/JPY – Fundamental Review

The Bank of Japan tried to weaken the JPY last week when it kept its policy steady, leaving the interest rate at -0.10 %. But the recent uncertainties over China and the US trade war led the Yen up to its strongest level against the dollar in nine days.

EUR/JPY – EMA Bullish Crossover & Triple Top

On the 2 hour chart, the EUR/JPY continues to trade bearish above triple bottom support area of 128.500. Zooming out on the 2-hour chart, you can see the same level was working as a resistance back in July.

The EUR/JPY has come down to the same resistance level of 128.500. It will be nice to see if EUR/JPY manages to violate this support level or not. Because if it breaks downward, the next target is likely to be 127.350.

On the other side, the Japanese cross can target 129.250 and 129.650 only if it manages to stay above 128.500. Coming up next is the PPI data from the US economy. It might be interesting to watch it to catch any surprises.

Good luck traders and stay tuned!

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