EUR/JPY Tests 50 EMA – Is It Poised to Reverse?
Arslan Butt • 1 min read
Due to May Day, the European markets are mostly closed, causing thin volatility and trading volume in the market. Yet, the markets are moving, and we may have a potential trade setup in the EUR/JPY.
EUR/JPY is extending a bullish retracement from the 124.00 area, already testing the 125.150 resistance. The market seems to buckle up for higher grounds, but the 50 EMA will be a hurdle here.
Key Trading Level: 124.86
The recent candle is half bullish and half bearish, suggesting a neutral bias of traders. It also confirms that the traders are respecting this EMA. On the lower side, EUR/JPY can find support around 124.800 and 124.600 today.
Consider staying bullish above 124.850 with a stop loss below 124.500 and take profit around 125.250. The violation of 125.250 can extend bullish rally until 125.600 so you can consider it a second take profit.