On Monday, the EUR/JPY is trading at 122.164, with a strong bullish bias. It looks like the demand for safe-haven assetsfading as investors are moving their funds into the Euro, Sterling, and peer currencies.
The U.S. & China will sign their first phase of the trade deal on 15th January, which will help in reducing the slowdown of the global economy and will possibly support the U.S. dollar.
Furthermore, the tensions between the U.S. & Iran also came to an uncertain end on Friday when the U.S. imposed sanctions on many sectors of Iran and its 8 top officials. The response from Iran is expected as the same sanctions on the U.S. However, it is unclear how Iran will respond now. The U.S. President Donald Trump has said that these sanctions will remain until Iran started to change its behavior.
| Support | Pivot Point | Resistance |
| 121.58 | 121.71 | 121.9 |
| 121.39 | 122.03 | |
| 121.08 | 122.35 |
Technically speaking, the EUR/JPY has violated the primary resistance level of 122.050. Closings of 4-hour candles above 122.100 resistance level may drive the bullish trend in the EUR/JPY currency pair. On the higher side, the EUR/JPY pair may continue to trade higher until 122.650 today.
EUR/JPY Trade Setup
Buy Above 121.950
Take Profit 122.500
Stop Loss 121.750
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.