EUR/JPY Sitting Quietly Near 130 – Bearish Reversal Pattern Eyed
Arslan Butt • 1 min read
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.
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!