EURJPY lingers at critical level, will bulls win this time?
“Risk taking is persistent in the market as traders shifts their focus towards US dollar.”
Japanese Yen weakened as traders initiate selloff following Jackson Hole symposium last weekend. During the event, Federal Reserve Chair Jerome Powell reiterates that interest rates will not be decreased any time soon due to persistently high inflation. His signal suggests further hawkishness ahead while at the same time, raising the opportunity cost for holding safe-haven assets such as Japanese Yen.
Quick recap on EURJPY
The pair has been trading in a sideways channel due to strong buying and selling pressure from both sides.
EURJPY Weekly Technical Analysis
From weekly perspective, while numerous attempts were made to push the pair downwards, its overall structure remained skewed towards the upside.
EURJPY Daily Technical Analysis
From daily perspective, the pair retest at the strong resistance of 138.09 while at the same time, MACD shows an uptick in bullish momentum.
Trading Idea
ORDER: BUY STOP
ENTRY: 138.50
STOP LOSS: 137.00
Target 1: 140.50
Target 2: 142.50
ZFX Analyst’s Comment
The pair has provided some signal for a possible thrust above, thus we will wait for a breakout for further confirmation.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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