The EUR/JPY traded precisely in line with our previous forecast. The Japanese cross-traded sideway within the symmetric triangle pattern, which is supporting the pair around 120.200 along with resistance at 121.
China reiterated earlier in the day that tariffs should be lifted as part of the phase-one deal after the reports from Bloomberg in which the US officials said that they expect an interim agreement before December 15. It's the day when America is expected to impose the latest round of tariffs on Chinese goods in case of no-deal by then.
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On Friday, the EUR/JPY continues to trade below the strong resistance area of 120.60. The symmetric triangle pattern is still in play, and it's likely to keep the pair above 120.200 today. The 50 periods EMA was extending support around 120.600 level, but now it's been violated and driving bearish bias in the market.
Closing of candles above 120.200 is likely to offer us a buying trade opportunity with a stop below 120 and take profit of around 120.650.
EUR/JPY - Trade Setup
Buy Limit 120.20
Take Profit 121.700
Stop Loss 120
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