EUR/JPY Trade Idea Going Well - What's Next?

EagleFX Team EagleFX

On Tuesday, the EUR/JPY has traded exactly as we forecasted in the previous update. The EUR/JPY pair fell below 122.740 to trade at 122.250. The demand for safe-haven assets shrunk due to a lack of uncertainty in the market.

However, the war drums in the Middle East and a "new strategic weapon" in North Korea are playing their role today. Either of these seems to have prompted the yen to soar higher versus the Euro today.

Traders are well aware that the Japanese yen carries safe-haven status in events of heightened geopolitical risk, and the recent surge can be due to the same reason.

Support	Pivot Point	Resistance
122.06	122.28	122.62
121.71		122.84
121.15		123.41

On the technical side, the EUR/JPY has tested the 122.750 resistance area and has formed a Doji and bearish engulfing candlestick. On the lower side, the EUR/JPY may find support around 122.170, which marks 23.6% Fibonacci retracement. Violation of this can also extend selling until 38.2% Fibonacci retracement level.

EUR/JPY Trade Setup

Sell Below 122.450

Take Profit 122.200/ 121.750

Stop Loss 122.850

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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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