EUR/JPY Channel Plays Well – Industrial Production Supports
Arslan Butt • 1 min read
What’s up, traders.
There’s been choppy trading behavior almost in all the financial markets due to limited economic events. Lately, the EUR/JPY pair gained support after the release of positive industrial production figures from the Eurozone.
The statistical office of the European Union released the industrial production data, showing a surprise surge of 0.9% in May 2019 figures. These numbers are extremely high compared to a forecast of 0.2% and the previous release of -0.4% drop. Which is why we are seeing some support in the EUR/JPY pair.
Recalling our previous update EUR/JPY Bounces Off Support, the pair traded exactly in line with our forecast, bouncing off the support area of 121.600 to test the resistance at 122.200. While the 50 and 100 periods EMA are now extending support around 121.950 level. The trading range of EUR/JPY has now widened to 122.325 – 121.600.
Key Trading Level: 121.97
I’m sticking with my same old trade plan to stay bearish under 122.350 and bullish above 121.650 with a 20 pips stop loss and 50 pips take profit on both sides.