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Harry
• Posted in Forex
The EUR / JPY has been steadily declining since February. The pair is on the back because the main uncertainties hit the market. President Trump has imposed tariffs on China and allies are calling for strong disagreements and retaliation. Tension has increased worldwide, and safe haven currency has become the best choice for traders and investors.
The Japanese yen is one of the safe havens to appreciate. On the other hand, the euro could remain on the defensive after the ECB decision to end the mbadive quantitative easing program in December 2018. EUR / JPY is expected to continue its downtrend this year
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Chart of the Month
EUR / JPY came down from the pink zone and reached 127.00 before bouncing back in June. The upward movement is expected, but it is closed below the middle of the bearish candlestick. The situation did not prove bullish and the pair could start a new bearish movement towards 125.00
Currently, 128.50 is the level of support to watch. Closing below the level will trigger more sales.
Weekly Chart
The pair found support at 127.00 and rebounded from the level. Without taking into account all the wisps on the chart, we found that the EUR / JPY was trading inside a bearish candlestick for five weeks. The pair is in a consolidation period and is waiting for the next momentum move. Traders will monitor 127.00 and 130.00 for confirmation.
Daily Chart
A triangle formed on the EUR / USD daily chart and the pair currently testing the top of the triangle. There is no direction yet for the pair, and we will wait until the breakout occurs
Trade Plan
The long term long position could be taken from 125.00. Over a shorter period, 125.00 and the bottom of the triangle on the daily chart will attract attention.
A short position could be taken from the top of the triangle on the daily chart.
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