The demand for safe-haven assets remains strong, and it's keeping the EUR/JPY pair closer to the low price level of 119. The local government of China's Hubei province, the epicenter of a global coronavirus outbreak, reported 14,840 new cases, a huge jump from 1,638 cases a day earlier, claiming a revised calculating methodology. At the same time, Beijing replaced two top communist party officials in that province.
The EUR/JPY is trading at 119.200, holding in the oversold range as we can see the RSI value is staying below 20, suggesting chances of a bullish reversal. The odds of bullish retracement remains pretty solid as the RSI is looking to come out of the selling range. If this happens, we may see EUR/JPY prices heading towards 38.2% Fibo levels at 119.400.
Today, we should look for buying trade around 119.250, only if the EUR/JPY breaks above 23.6% Fibo mark, as the chances of pair raising towards 119.400 and 119.750 will be high.
EUR/JPY - Trade Plan
Buy Above 119.250
Take Profit 119.600
Stop Loss 118.800
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