EUR/JPY: Breaks Bullish Channel - 38.2% Fibo Level Eyed!

EagleFX Team EagleFX

The Japanese cross EUR/JPY traded bullish to place a high around 121.200 area as the trade talks between the U.S. and China faded the demand for the safe-haven currency.

The Japanese yen weakened over risk-on sentiment as traders moved their funds from gold and Japanese yen to the high yielding stock markets. But now, the market seems to take a reversal.

Zooming out on the 4-hour chart of the EUR/JPY, the pair was trading in a bullish channel that extended resistance at 121.400 resistance. Whereas, the support remains at 120.800 level.

The 50 period EMA stays around 120.400 area while the current market price for EUR/JPY is 120.800. It means the EUR/JPY still has room for further sell-off.

122.27

Support	Pivot Point	Resistance
120.89	121.18	121.43
120.64	121.73
120.09	122.27

At this moment, the EUR/JPY is holding around 23.6% Fibo levels, while the violation of this level could trigger further sell-off up to 50% Fibo level of 120.350.

EUR/JPY Trade Setup

Sell Below 121
Take Profit 120.600 & 120/400
Stop Loss 121.400

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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