What to trade? Consider EUR/JPY
EUR/JPY is enjoying the medium-term uptrend since the start of September. The pair’s currently trading above the 50-week MA (121.66) and above December highs (122.50). The latter hadn’t let the pair to get higher for four weeks, so a break above will mean that buyers have become stronger. The next targets on the upside are at 123.35 (June high) and 124.15 (38.2% Fibonacci retracement of the 2018-2019 decline). Although the long-term is negative and there will be significant resistance at the mentioned levels, a weaker yen may lead the pair to the mentioned targets. The medium-term outlook will remain positive as long as EUR/JPY is trading above 121.00.
At the same time, we still haven’t seen a daily fix above 122.50. A decline below today’s low at 122.30 will mean that the move to the upside was false and open the way for a decline to 121.50.
Trade ideas
BUY 122.65; TP1 123.35; TP2 124.15; SL 122.45
SELL 122.25; TP 121.60; SL 122.40
