EUR/JPY Trades Does Well – What’s Next? - Forex News by FX Leaders

EUR/JPY Trades Does Well – What’s Next?

Posted Wednesday, October 17, 2018 by
Arslan Butt • 1 min read

The single currency Euro slipped as traders seemed uncertain about the EU summit and the outcome on Brexit issue. However, it turned in our favor as the weakness in Euro got us green pips in the EUR/JPY. What’s next for it?

As you can see on the chart, the EUR/JPY is falling dramatically to test the double bottom support zone of 127.400. Here are three solid reasons to stay bearish on EUR/JPY.

  • The pair seems to form three black crows which demonstrates the selling bias of traders.
  • Stochastic is below 50, which is signaling selling trend.
  • The EUR/JPY is holding below 20 & 50 periods EMA, which is another sell signal for us.

EUR/JPY – Trade Plan

Since we already encashed the selling trend, now I’m looking for a buying trade in the EUR/JPY. Therefore, the idea is to place a buy limit at 129.200 to target 129.650 today. 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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