EUR/JPY Set for 61.8% Fibonacci - Brace for Sell Signal!
|The EUR/JPY is consolidating with a bearish at 121.507, having completed a 50% Fibonacci retracement level. The EUR/JPY pair gained bullish momentum after the U.S. Housing Price Index for November came short of forecast and weighed on the U.S. dollar when it came in as 0.2% against the expectations of 0.3%. Consequently, traders seem to invest in safe-haven assets.
On Japan front, the Japanese Yen was stronger against the U.S. dollar due to the Bank of Japan’s upgraded growth forecast for 2020. The fears of coronavirus spread also supported the safe-haven Japanese yen.
The central bank of Japan raised its expectations of growth in Japans’ economy for the year 2020-2021 to 0.9% from 0.7% in October. The Japanese Yen’s strength dragged the EUR/JPY pair on Thursday.
|
Support |
Pivot Point |
Resistance |
|
121.64 |
121.83 |
122.04 |
|
121.43 |
122.23 |
|
|
121.02 |
122.63 |
The EUR/JPY is heading lower with a bearish sentiment at 121.450, having completed a 50% Fibo level. For now, the pair is likely to head towards 68.2% Fibonacci retracement at 121.200.
EUR/JPY - Trade Plan
Sell below 121.550
Take Profit 121.160
Stop Loss 121.750
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