EUR/JPY Violates Bearish Channel – Tweezers Top in Focus
Arslan Butt • 1 min read
What’s up, fellas.
The financial markets are on the move, but most of the movement is limited as traders await the outcome of US-China trade talks. Moreover, the US PPI data also remains in the highlights today.
Recently, the EUR/JPY pair formed a pretty brisk trade setup that is worth taking a risk on. Looking at the 4-hour chart, EUR/JPY has violated the bearish channel, which was keeping it bearish below 117.450 area.
The bullish breakout of 117.450 has to lead prices towards 117.950. For the moment, the EUR/JPY pair has formed a tweezers top pattern below 117.950, which is suggesting odds of a bearish reversal.
Alongside, the EUR/JPY pair has also reached the overbought zone, which is signaling chances of bearish reversal. On the lower side, EUR/JPY can dip towards 117.400 and 117.010 levels. On the upperside, the bullish breakout of 117.950 is likely to lead prices towards 118.200.
Forex Trading Signal
Fellas, we have opened a forex trading signal to stay bearish below 117.950 with a stop loss above 118.250 and take profit at 114.250.