Shorting the Pullback in EUR/JPY

EUR/JPY has retraced higher again today as the JPY retreats, but I don't think this will last too long, se we sold this pair


EUR/JPY has been bearish for a long time, since the Euro has been declining everywhere, as the Eurozone economy weakened last year. This year, the spread of coronavirus has hurt risk currencies further, while safe havens such as the JPY have gained pace.

As a result, EUR/JPY made some strong bearish moves this month. But, we have seen two very decent pullbacks higher on the H4 chart, once last wek as EUR/USD surged higher for no reason and once this week, as the safe havens are retreating lower, also with no particular reason, because coronavirus hasn’t matured yet.

Today we saw another bullish move in this pair, as USD/JPY is heading towards 108, but I think that this is just a dead cat bounce, because the virus is still spreading and governments are shutting down life one after another. But, the 100 SMA seems to be holding as resistance, so we decided to open a sell signal, just below that, targeting 107 and with a stop above last month’s high.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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