EUR/JPY Sitting Quietly Near 130 – Bearish Reversal Pattern Eyed

The EUR/JPY was facing a strong hurdle at 130 along with a support near 129.750. In a chart, we can see the EUR/JPY is trying hard to...


Our forex trading signal on EUR/JPY is tossing in profit and loss as the market lacks volatility due to lack of fundamentals as well as the uncertainty caused by US Midterm elections.  However, there’s a nice technical setup, which is worth trading now. Let’s take a look…  

 EUR/JPY –  Doji & Bearish Engulfing Pattern In Play

Looking at the hourly chart, the Japanese cross EUR/JPY was facing a strong hurdle at 130 along with a support near 129.750. In a chart, we can see the EUR/JPY is trying hard to violate the resistance level of 130. But the couple of Doji and bearish engulfing patterns are diminishing the bullish bias. We entered the selling positions in EUR/USD and EUR/JPY to capture these setups, but it seems to reverse now.

That the reason behind manually closing EUR/USD a bit earlier, but in profit. However, I’m looking to hold the EUR/JPY sell position as the setup doesn’t look too bad. The 50- periods EMA will be there to support the exchange rate above 129.650. Since there’s no economic event which can directly impact the EUR/JPY, we can expect the market to trade the technical levels.

Support      Resistance
129.09        129.91
128.56        130.2
127.75         131.01
Key Trading Level: 129.38

 

EUR/JPY – Trading Plan

The idea is to capture a quick sell only below 130 with a target of 129.70. The violation of 130 can lead the pair towards  130.400. Good luck!

 

 

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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