EUR/JPY Bearish Setup- Is It Good time to Short?
Arslan Butt • 1 min read
What’s up, traders.
It’s been a quiet day followed by a massively volatile day as most traders have already priced in G7 and the Jackson Hole event. The Asian and European session have been a bit muted due to a lack of fundamentals, but we may experience some movement during the US session. Looking at the broader picture, while below the 55-day SMA at 120.53 and the multi-month resistance line at 120.77, the bearish view is expected to remain unchanged.
EUR/JPY – Technical Outlook
EUR/JPY tumbles to fresh 2019 lows in the 116.50 regions just to rebound afterward and return to levels above the 117.00 handle.
On the 4 hour timeframe, EUR/JPY is facing strong resistance around 117.800 area.
The resistance is extended by 20 and 50 periods EMA which is pushing the pair lower, offering us a nice sell opportunity.
Secondly, the bearish trendline which is testing the EUR/JPY spike around 118.800 has also pushed the EUR/JPY pair lower, signaling chances of a bearish reversal.
EUR/JPY- Technical Levels
Key Trading Level: 117.62
EUR/JPY – Forex Trading Signal
Fellas, we are already in a sell trade below 117.360 with a stop loss above 117.650 and take profit of around 116.800.