EUR/JPY Trades In Bullish Channel - CPI Fails to Extend Support   - Forex News by Strategia Forex

EUR/JPY Trades In Bullish Channel – CPI Fails to Extend Support  

Posted Wednesday, September 18, 2019 by
Arslan Butt • 1 min read

As discussed in our previous update, the bullish channel was supporting the EUR/JPY pair around 118.800. EUR/JPY bounced off above this level to post a high around 119.800 level.
EUR/JPY slips despite neutral CPI figures for the Eurozone. As per the report, the Euro area year-end inflation number was 1.0% in August 2019, steady compared to July.
A year before, the price moved by 2.1%. European Union yearly inflation was 1.4% in August 2019, firm against July’s data. Whereas, the final Core CPI y/y figure grew at the same pace of 0.9% as it was before.

EUR/JPY – Technical Outlook

As you can see on the chart below, EUR/JPY has formed a Doji candle followed by bullish waves ending at 119.800. The Doji and a bearish engulfing pattern signal odds of a bearish trend.
The Japanese cross is facing immediate support around 119.450 area, and violation of this level could trigger further selling in EUR/JPY until 119.200 and 118.800 support zones.
The RSI is still holding in the overbought zone, which may help motivate investors to take profits.

EUR/JPY – Technical Levels

Support Resistance
119.16 120
118.64 120.3
117.8 121.14
Key Trading Level: 119.47

EUR/JPY – Trade Setup

I will be looking to open a sell position below 119.800 with a stop loss above 120.10 and take profit around 119.00
Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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