EUR/JPY testing 23.6% retracement – Time to set buy limit! - Forex News by FX Leaders

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

Posted Thursday, August 30, 2018 by
Arslan Butt • 1 min read

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

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.
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