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EUR/JPY Heads Lower Despite Positive Economic Sentiment

Posted Tuesday, October 15, 2019 by
Arslan Butt • 1 min read

The US session seems to begin with sharp volatility in the EUR/JPY pair as the pair is dropping from 119.400 to 119 area. It looks like the safe-haven appeal is dominating the market.

On the other hand, the German ZEW Economic Sentiment posted a very slight drop of 0.3 points in October 2019 and now holds at -22.8 points. It thus persists well under the long-term mean of 21.4 points.

In the recent survey in October, the evaluation of the economic conditions in Germany repeatedly worsened by 5.4 points, with the identical indicator falling to a current version of -25.3 points. Despite a slower than expected drop, the economic figure is still below 0, signifying worsening economic conditions in German.

Technically, the pair is falling below 23.6% Fibonacci retracement level of 119.450. Below this, we may see further bearish trend until 119.000. The RSI and Stochastics are also directing lower, suggesting bearish bias.

EUR/JPY 4 hour Chart
EUR/JPY 4 hour Chart

EUR/JPY – Forex Trading Signal

Considering the trade setup, we have just opened the bearish signal below 119.290 with a stop loss above 119.450 and take a profit of 119.00.

Good luck!

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