The EUR/JPY is binding lower during the early U.S. Session as soft demand for stock market indices is serving to push up the Japanese Yen’s demand as safe-haven security. Bearish bias soared as risks of a no-deal Brexit ramped up repeatedly overnight.
Brexit risks glowed amid news on Tuesday that U.K. Prime Minister Boris Johnson will modify the Brexit bill, explicitly ordering out any delay to the transition phase over December 2020. The U.K. is expected to leave the European Union by January 31.
Technically, the EUR/JPY is heading south, after facing stiff resistance around 122.600 level. The EUR/JPY is now very likely to complete 38.2% Fibonacci retracement around 121.600.
|
Support |
Pivot Point |
Resistance |
|
121.9 |
122.18 |
122.43 |
|
121.65 |
122.71 |
|
|
121.11 |
123.24 |
The 50 periods EMA also holds around 121.200, which leaves enough space for the EUR/JPY to retrace enough. Consider doing choppy trading within 122.600 and 121.600 today until the breakout occurs.
EUR/JPY - Trade Setup
Sell Below - 122.450
Take Profit - 121.600
Stop Loss - 122.750
Buy Above - 121.600
Take Profit - 122.200
Stop Loss - 121.350
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