EUR/JPY Steady Below 125.200 - Spinning Top in Focus - Forex News by FX Leaders

EUR/JPY Steady Below 125.200 – Spinning Top in Focus

Posted Monday, February 18, 2019 by
Arslan Butt • 1 min read

The Japanese currency pair EUR/JPY jumped to trade near 125.200 due to weakness in Japanese Yen and strengthening of Euro. Since Euro is the second most traded currency in the world after US dollar, a weakness in dollar index increases flow of investment towards the Euro. Hence, an increased demand for Euro is causing bullish trends in the EUR/JPY.

At the moment, the pair is likely to trade the technical setup on the 4-hour chart. Zooming out of the 4-hour chart, we can see the Japanese cross is still trading in the bullish channel. But it has recently entered the overbought zone which is weighing on the bullish momentum.

EUR/JPY has also formed a spinning top candle below 125.200 which is signaling a weakness in the bullish power. Below this, the pair can stay bearish until 124.650 while a bullish breakout can lead the pair towards 125.550 today.

EUR/JPY – Trade Idea

Fellas, consider selling below 125.200 to target quick 30/40 pips with a minor stop loss above 125.350. The market can continue trading sideways due to lack of economic events and we need to be very careful with choppy sessions today.

Stay tuned to FX Leaders for forex trading signals.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // 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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of