EUR/JPY: Breaks Bullish Channel - 38.2% Fibo Level Eyed!
|The Japanese cross EUR/JPY traded bullish to place a high around 121.200 area as the trade talks between the U.S. and China faded the demand for the safe-haven currency.
The Japanese yen weakened over risk-on sentiment as traders moved their funds from gold and Japanese yen to the high yielding stock markets. But now, the market seems to take a reversal.
Zooming out on the 4-hour chart of the EUR/JPY, the pair was trading in a bullish channel that extended resistance at 121.400 resistance. Whereas, the support remains at 120.800 level.
The 50 period EMA stays around 120.400 area while the current market price for EUR/JPY is 120.800. It means the EUR/JPY still has room for further sell-off.
122.27
| Support | Pivot Point | Resistance |
| 120.89 | 121.18 | 121.43 |
| 120.64 | 121.73 | |
| 120.09 | 122.27 |
At this moment, the EUR/JPY is holding around 23.6% Fibo levels, while the violation of this level could trigger further sell-off up to 50% Fibo level of 120.350.
EUR/JPY Trade Setup
Sell Below 121
Take Profit 120.600 & 120/400
Stop Loss 121.400
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