EUR/JPY Trade Idea Going Well - What's Next?
|On Tuesday, the EUR/JPY has traded exactly as we forecasted in the previous update. The EUR/JPY pair fell below 122.740 to trade at 122.250. The demand for safe-haven assets shrunk due to a lack of uncertainty in the market.
However, the war drums in the Middle East and a "new strategic weapon" in North Korea are playing their role today. Either of these seems to have prompted the yen to soar higher versus the Euro today.
Traders are well aware that the Japanese yen carries safe-haven status in events of heightened geopolitical risk, and the recent surge can be due to the same reason.
|
Support |
Pivot Point |
Resistance |
|
122.06 |
122.28 |
122.62 |
|
121.71 |
122.84 |
|
|
121.15 |
123.41 |
On the technical side, the EUR/JPY has tested the 122.750 resistance area and has formed a Doji and bearish engulfing candlestick. On the lower side, the EUR/JPY may find support around 122.170, which marks 23.6% Fibonacci retracement. Violation of this can also extend selling until 38.2% Fibonacci retracement level.
EUR/JPY Trade Setup
Sell Below 122.450
Take Profit 122.200/ 121.750
Stop Loss 122.850
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