EUR/JPY Triangle Pattern Breakout – Huawei CFO Issue Prompts Safe Haven Demand
Arslan Butt•Thursday, December 6, 2018•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.
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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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