On Monday, the EUR/JPY currency pair is trading bearish below 120.350 level, which previously was working as a support. The EUR/JPY fell dramatically to violate the symmetric triangle pattern as the demand for safe-haven Japanese yen soared over ongoing uncertainty from the U.S. China trade war.
Besides, Prime Minister of Japan, Shinzo Abe, approved an economic stimulus package worth 26 Trillion Yen ($239 Billion) to help a slowing domestic economy on Thursday.
Abe said that the policy package was designed to help in overcoming the economic downside risks caused by weakening global growth and recent tax hikes. Japan reported the lowest quarterly economic growth in a year for the July-September period, with a 0.2% rise on an annual basis.
In compiling the package, Japan's heavily indebted that the government will need to beat stretched capacity to battle overseas opportunities and the impact of October's sales tax hike, which Bank of Japan has estimated to generate a budget of 2.2 Trillion Yen on the households in 2020 fiscal.
-637115075468024738.png)
| Support | Pivot Point | Resistance |
| 119.83 | 120.3 | 120.6 |
| 119.53 | 121.08 | |
| 118.75 | 121.86 |
The EUR/JPY has finally come out of asymmetric triangle pattern and has closed series if candles outside the range. The resistance level of 120.350 is likely to keep the EUR/JPY bearish until the next support level of 119.700.
Both of the leading and lagging indicators such as RSI and 50 periods EMA are suggesting chances of a bearish bias in the EUR/JPY currency pair.
EUR/JPY – Trade Setup
Sell Limit 120.25
Take Profit 119.750
Stop Loss 120.55
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
Recommended Content
Editors’ Picks
GBP/USD resumes upside toward 1.3300 ahead of BoE rate call
The GBP/USD gains traction and approaches 1.3300 in European trading on Thursday, having found buyers near 1.3150. A broad US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements.
EUR/USD rises further toward 1.1200, focus shifts to ECB-speak
EUR/USD stays strongly bid toward 1.1200 in the European session on Thursday. The pair capitalizes on a renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed.
Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness
Gold price regains positive traction following the previous day's pullback from the all-time peak and builds on its steady intraday ascent heading into the European session on Thursday.
BoE expected to keep interest rate unchanged at 5% as price pressures persist
After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.