US Session Trade Setup - EUR/JPY Bearish Breakout
|The EUR/JPY has crossed below the 61.8% Fibonacci retracement at 119.600 and seems to have formed a bearish engulfing candle on the daily timeframe. The Euro is struggling in the wake of an increased number of coronavirus cases.
The European Central Bank President Christine Lagarde announced the coronavirus was not still at the stage where monetary policy acknowledgment is required. On the other hand, official data revealed that the eurozone's Economic Confidence Index soared to 103.5 in February (102.8 forecasted) from 102.6 in January.
On Friday, the Japanese yen recovered as a beacon of safety, scoring a one-month high versus the greenback, as mounting concerns the world was on the cusp of a pandemic threw global financial markets into a tailspin.
| Support | Pivot Point | Resistance |
| 119.97 | 120.51 | 121.06 |
| 119.42 | 121.6 | |
| 118.33 | 122.69 |
On the 4-hour timeframe, the EUR/JPY is heading south to drop below the 61.8% Fibonacci retracement level of 119.200. Continuation of a selling trend can extend further bearish bias until 119.050 and 118.750. The RSI is also entering the oversold zone, which may help trigger some bullish correction.
EUR/JPY - Trade Plan
Sell Below 119.560
Take Profit 119.010/118.860
Stop Loss 119.850
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