EUR/JPY on a Bullish Run – Quick Update on Trading Signal
Arslan Butt • 1 min read
What’s up, traders.
EUR/JPY is trading in a bullish tone at 120.500 level in the wake of weaker Japanese yen and stronger Euro. Lately, the positive comments on progressing trade negotiations between the two largest economies triggered the fading demand for riskier assets like such as GOLD and Japanese yen. As a result, the pair started to move in an upward direction on Wednesday.
The positive comment from President Trump came after the trade negotiators from both countries held a telephonic conversation on how to resolve core issues of the Phase-one deal. The Chinese Ministry of Commerce confirmed after the conversation that both parties would remain in contact regarding the remaining problems of phase-one agreement.
On the technical front, EUR/JPY has come out of the symmetric triangle pattern, which was resisting the pair around 120.400. The lack of safe-haven demand as triggered buying and now the pair is heading north to target 120.650 today.
On the lower side, the pair may find support above the previously violated resistance level of 120.400.
Key Trading Level: 120.38
The RSI is holding around 85, which is overbought zone, but the three while soldiers candle on the 4-hour chart is still supporting the bullish bias. We could look for sell trades below 120.650 if EUR/JPY manages to close candles below this level today.
Anyhow, please stay tuned to FX Leaders signals page for update trading signals. Good luck, and enjoy Thanksgiving day.