EUR/JPY Breaks Over Double Top - Is 122.650 Next Stop?
|On Monday, the EUR/JPY is trading at 122.164, with a strong bullish bias. It looks like the demand for safe-haven assetsfading as investors are moving their funds into the Euro, Sterling, and peer currencies.
The U.S. & China will sign their first phase of the trade deal on 15th January, which will help in reducing the slowdown of the global economy and will possibly support the U.S. dollar.
Furthermore, the tensions between the U.S. & Iran also came to an uncertain end on Friday when the U.S. imposed sanctions on many sectors of Iran and its 8 top officials. The response from Iran is expected as the same sanctions on the U.S. However, it is unclear how Iran will respond now. The U.S. President Donald Trump has said that these sanctions will remain until Iran started to change its behavior.
| Support | Pivot Point | Resistance |
| 121.58 | 121.71 | 121.9 |
| 121.39 | 122.03 | |
| 121.08 | 122.35 |
Technically speaking, the EUR/JPY has violated the primary resistance level of 122.050. Closings of 4-hour candles above 122.100 resistance level may drive the bullish trend in the EUR/JPY currency pair. On the higher side, the EUR/JPY pair may continue to trade higher until 122.650 today.
EUR/JPY Trade Setup
Buy Above 121.950
Take Profit 122.500
Stop Loss 121.750
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