Bearish Setup in EUR/JPY – Brace for a Sell

On Hourly chart of EUR/JPY, the pair bounced off from lows at 117.80 and moved up. However, the pair reached the resistance at 119.83...

Arslan Butt•Tuesday, August 6, 2019•1 min read

What’s up, fellas.

The level of uncertainty is rising since amid escalating trade war tensions between the world’s two biggest economies. The US Treasury Secretary Steven Mnuchin named China as a Currency Manipulator after China let its yuan weaken below 7 against the dollar on Monday, an 11-year low, adding to broad risk aversion on concerns about the escalation of the US-China trade war.

Anyhow, this only is worsening things between the two nations, and eventually triggering the safe-haven appeal. The Japanese cross EUR/JPY is now facing strong downward pressure due to increased demand of Japanese yen.

Support Resistance
118.14 118.79
117.87 119.19
117.22 119.84
Key Trading Level: 118.53

On the hourly chart of EUR/JPY , the pair bounced off from lows at 117.80 and moved up. However, the pair reached the resistance at 119.83, which may limit the further rise. A move higher may be confirmed if the pair breaches above 119.90, and the target will be located at 120.50.

If the situation changes, the slide may be expected under 119.60 with the aim at 119.02. In the case of the breakthrough, pay attention to the level of 118.60.

Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.