EUR/JPY Jumps as Japanese GDP Disappoints – Potential Sell Limit!
Arslan Butt • 1 min read
I have been trading the forex markets for a number of years now, and in my experience, December is always the hardest month of the year to make money. As Christmas approaches, volatility in all of the major currency pairs always tends to drop off quite considerably.
At one moment, the forex pair gives a buy signal and the market reverses at the next moment. This is why we aren’t opening as many signals as we do before. But we may have a trade in the EUR/JPY.
The safe-haven Yen weakened after Japan’s Cabinet Office announced that the already declining Q3 GDP came out far worse than initially estimated. Economists forecast a drop of -0.5% but the actual figure slipped by -0.6%, driving sellers for the Japanese Yen.
The EUR/JPY is heading towards a strong resistance area of 129 – 129.250 and I will be looking for sell positions below this area. The stop loss should be above 129.450, along with a take profit at 128.200 and 128.