US Session Trade Setup - EUR/JPY Fibonacci Retracement In Play
|The EUR/JPY has reversed its losses in the wake of weakness in the Japanese yen and stronger Euro. The pair is trading at 119.500, and it seems to complete the 61.8% Fibonacci retracement until 119.600.
The single currency Euro is gaining strength versus Japanese yen despite worse than expected economic events. The German ZEW Current Situation Index declined to -15.7 in February (-10.0 expected) from -9.5 in January. The research institute said economic development is rather fragile at the moment, and the outlook for export-intensive sectors has deteriorated particularly sharply, citing impacts of the coronavirus outbreak.
|
Support |
Pivot Point |
Resistance |
|
119.46 |
119.88
|
120. |
|
119.19 |
120.57 |
|
|
118.5 |
121.26 |
The EUR/JPY has formed candle around 119.200, staying in overbought range as we can see the RSI value is staying over 80, implying the chances of a bearish retracement as well. If this case, the EUR/JPY may show a slight bearish reversal below 61.8% Fibo retracement level at 119.600. Today, I will be looking to stay bearish below 119.650 and bullish above 118.900.
EUR/JPY - Trade Plan
Buy Above 119.450
Take Profit 119.750
Stop Loss 119.250
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