Bearish Setup in EUR/JPY – Brace for a Sell
Arslan Butt • 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.
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.