EUR/JPY Consolidates in Bullish Channel – Quick Trade Idea
Arslan Butt • 1 min read
The Japanese crosses, especially the EUR/JPY is stuck in narrow ranges due to lack of interesting fundamentals. EUR/JPY is trading around 125.21, adding +0.24 points and +0.19% for the day.
On the release front, Japanese PPI failed to surprise the market with a gain of 0.6% in January, missing estimates of 1.0%. It has placed heavy selling pressure on the Japanese Yen, since this was the lowest level since January 2017. Besides that, the Japanese economy released GDP figures with an estimate of 0.4%.
On the other hand, the single currency Euro gained support after German GDP showed an upward movement by 0.2% and employment up by 0.3% in the Euro area.
Key Trading Level: 125.15
Technically, the EUR/JPY is stuck in a slight bullish channel which is supporting the pair near 125 along with resistance at 125.650. So, here’s a thing, the idea today is to stay bearish below 125.650 with a stop loss above 125.850 to target 125. While buying will be preferred above 125 today.