EUR/JPY Bearish Setup- Is It Good time to Short?

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
Support Resistance
117.1 117.97
116.75 118.48
115.89 119.35
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.

Good luck!

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.

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