Home Daily Analysis Charts / Trade Ideas EUR/JPY Ascending Triangle Spotted – Potential Trade Idea!

EUR/JPY Ascending Triangle Spotted – Potential Trade Idea!

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Traders, the market is lacking volatility after showing some serious fluctuation in the financial markets amid strong dovish remarks from FOMC member John Williams.

Earlier today, the euro zone’s current account surplus extended to 30 billion euros ($33.77 billion) in May compared to 22 billion euros the month before, the European Central Bank announced on Friday.

On the other hand, an overwhelming majority of Japanese companies see no need for the Bank of Japan to ease policy further this year, despite speculation the central bank may do so as early as this month as economic pressures mount.

On the technical side, EUR/JPY is creeping down slowly and steadily. This week, the currency pair broke the support line connecting June lows and thus resumed the downtrend which has been in place since the start of 2018.


 

The pair is moving towards the 61.8% Fibo retracements of the 2016-2018 advance just above 120.00. Daily MAs are in the negative order, and on W1 200- and 50-week MAs have just formed a “dead cross”. As a result, those who are patient enough can trade this downtrend.

R3:121.69
R2: 121.33
R1: 121.15
Key Trading Level:120.97
S1: 120.79
S2: 120.61
S3: 120.25

At this moment, EUR/JPY is holding right above 120.850, closing a candle above the triple bottom pattern. Now that’s something suggesting that there are still chances of a bullish reversal.

We may see EUR/JPY soaring towards 121.120 and 121.266 levels today for in the coming week. However, the violation of 120.800 can send it deeper towards 120.200. Good luck!

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