Trade Setup EUR/JPY
|The EUR/JPY is trading with a bearish bias below a strong resistance level of 122.850, and it seems to target 122.200 as the Euro is getting weaker in the wake of worse than expected Current Account and Italian Trade Balance data.
Demand for safe-haven assets increased after China's 4th-quarter (Q4) GDP numbers remained unchanged, while also meeting the forecast, at 6.0% YoY and 1.5% QoQ. However, Retail Sales grew past -7.8% expectations to reprint 8.0% growth. The Industrial Production crossed a 5.9% market consensus and 6.2% before a rise to 6.9%.
Back in November 2019, the current account of the Eurozone registered an excess of €34 billion versus the surplus of €36 billion in October 2019. In the 12-month span to November 2019, the current account registered an excess of €357 billion (3.0% of euro area GDP), versus a excess of €367 billion (3.2% of euro area GDP) in November 2018.
|
Support |
Pivot Point |
Resistance |
|
122.53 |
122.7 |
122.9 |
|
122.34 |
123.07 |
|
|
121.97 |
123.44 |
The EUR/JPY is trading bearish in a tight trading range of 122.750 - 122.160, and breach of this area can drive the further trend for the EUR/JPY. The pair is completing 23.6% Fibonacci retracements, and below this, the next stop is likely to be 38.2% level of 121.800.
EUR/JPY - Trade Plan
Sell below 122.45
Take Profit 122.25/122.05
Stop Loss 122.75
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