EUR/JPY Triangle Pattern Breakout – Huawei CFO Issue Prompts Safe Haven Demand
Arslan Butt • 1 min read
The Japanese Yen gained after the arrest of Chinese tech giant Huawei’s CFO, which prompted fears of a flare-up in US-China trade tensions. This triggered the safe-haven appeal, causing an increase in the demand for Japanse Yen. That’s why the EUR/JPY is trading bearish today.
EUR/JPY – Key Technical Points
- On the technical side, the EUR/JPY is trying to violate descending triangle pattern which is providing a solid support at 127.800.
- The pair is trading below 20 & 50 periods EMA, which is signaling a bearish bias of traders.
- The RSI and Stochastics are holding below 50, supporting the selling trend in the EUR/JPY.
- For now, I’m expecting a slight bullish retracement in the pair, may be up to 128, but the odds of a selling trade remain pretty high.
- The bearish breakout at 127.450 can lead EUR/JPY towards 125.450.