EUR/JPY Soars Over Weaker Japanese Yen - Brace for a Trade Plan!
|The EUR/JPY traded mostly higher around 121.655 level to complete 61.8% Fibonacci retracement. Most of the bullish bias came over faded demand for safe-haven assets such as gold and Japanese yen. Trump said that the US would not give any Military reply to Iran for these airstrikes because of minimal casualty, and now it would impose economic & financial sanctions on Iran. The sanction will remain until Iran started to change its behavior and stop supporting terrorism. He also added that Iran must forget its ambitions of becoming a nuclear power.
These comments from US President Donald Trump indicated de-escalation of US-Middle-East conflict and Japanese Yen; a safe haven currency started to lose its early gains. The markets always tend to exaggerate the geopolitical developments that caused a sudden drop in the prices of USD/JPY in the initial session and then a sudden rise in late sessions.
| Support | Pivot Point | Resistance |
| 0.6848 | 0.6867 | 0.6884 |
| 0.683 | 0.6903 | |
| 0.6794 | 0.694 |
On the technical front, the EUR/JPY is lingering around 121.600, which marks the 61.8% Fibonacci retracement level. Continuation of a bullish trend can bring buying until 122. Below 121.600, we may see EUR/JPY falling towards 121.350.
EUR/JPY - Trade Setup
Sell Below 121.750
Take Profit 121.250
Stop Loss 122.10
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