EUR/JPY Completes 61.8% – Is it good time to buy?

The common currency Euro gains support after the release of final CPI data. The Euro area annual inflation rate was 2.0% in August 2018, down from 2.1% in July 2018. A year earlier, the rate was 1.5%. European Union annual inflation was 2.1% in August 2018, down from 2.2% in July. The market hasn’t taken much impact from the news, but it’s clearly indicating which way the EUR/JPY pair should move.

The EUR/JPY has completed 61.8% Fibonacci retracement at 130.100 and has formed a sort of bullish engulfing above it. The bullish engulfing and series of doji patterns are suggesting a bullish sentiment of traders.

The pair can stay bullish above 130.130 with a target of 131.115. The RSI and 50- periods EMA are also in the favor of bullish trend. Good luck!