EUR/JPY testing 23.6% retracement – Time to set buy limit!

The EUR/JPY continues to trade bullish near 130.500, as the safe haven demand diminishes. In fact, as per the recent data, the Spanish CPI data came out as expected (2.2% vs 2.2%). For now, the investors are waiting for the German Prelim CPI m/m which is expected to release during the European session.

EUR/JPY – 2 Hour Chart

Taking a look on the 2-hour timeframe, the EUR/JPY has entered the overbought zone. The relative strength index is holding above 80 and signaling a very strong bullish trend. On the other hand, the pair has also completed the 23.6% retracement at 130.560 and it’s still holding above it. So, the violation of 130.560 can lead the pair towards 130.350 (38.2% Fibo level).

I’m placing my buy limit at 130.500 to target 130.900 as the medium term trend still remains bullish. Good luck!