Don’t feel like trading the US dollar today? I’m Gucho!
It appears that the EUR/JPY is ready to test a potential area on the 4-hour chart
check it!
EUR/JPY 4-hour forex Planned by TV
If you pay attention to the yen pairs, you will know that the EUR/JPY has fallen a lot from the 158.00 resistance area.
The pair is trading near 154.50, which is not far from the S2 (153.81) Pivot Point level on the 4-hour timeframe.
But wait there’s more!
As you can see, EUR/JPY is also not far from the 50% Fibonacci retracement of the June rally, the retest of the 200 SMA, and the trendline support that has been there since April.
Buying at current levels will result in a very good risk-to-risk ratio especially if you place your stop-loss orders just below the trend line and target the previous highs of EUR/JPY.
If you prefer to sell the EURJPY, you may want to do so after EUR/JPY breaks below the support area we are watching.
Just make sure you are trading a legit negative breakout instead of a fake one if you are short EUR/JPY!