EUR/JPY Trades Bullish Channel – German Sentiment Surprises
Arslan Butt • 1 min read
The single currency euro has gained support over stronger than expected consumer sentiment from the Eurozone. As per the recent update from ZEW, the Indicator of Economic Sentiment for Germany underwent a dramatic rise in September 2019, making up for the noticeable decline observed in August.
Right now holding at minus 22.5 points, the indicator soared 21.6 points compared to the previous month. The index thus presents around the same spot as it was in June, minus 21.1 points. However, the indicator still holds below the long-term average of 21.5 points.
Anyhow, investors are buying euro on the news, which is why we have a slight bullish movement in EUR/JPY. The pair is still holding within a bullish channel, which is keeping it supported above 118.800 along with providing resistance at 120.
The 50 periods EMA may also extend support around 118.750. The RSI is below 50, which is suggesting a bearish bias for the EUR/JPY but support level is still valid, and we should not enter a sell position until it gets violated.
EUR/JPY – Technical Levels
Key Trading Level: 119.06
EUR/JPY – Trade Plan
I will be keeping an eye on 119.200 as EUR/JPY can stay bearish below and bullish above this level. On the upper side, the target is likely to be 119.500. While on the lower side, the goal can be 118.800.