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

Posted Wednesday, November 7, 2018 by
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.

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!

 

 

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About the author

Arslan Butt is our 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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