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

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!

 

 

 

 

 

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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