The EUR/JPY currency pair rose last week to gain more than 130 pips and break the key resistance level at 130.64. Then, the currency pair doped on Friday after the US jobs report which showed an increase of 27 000 compared to 209k in July, so now the pair has returned back to trade above the resistance level again.
The EUR/JPY pair has been trading inside a price channel since last April and after it broke July’s high to record the highest level in 17 months it is expected the pair will make new highs this month. The EUR/JPY is still trading above the moving average which is a support level for the prices and the MACD indicator supports our positive vision too.
The Next Few Days
From this simple analysis of the pair we can buy it at the current level 130.73 and keep our first target at 132.12, which is 161.8% from the short correction wave last month; we should place our second target at 134.14 and keep our stop-loss level once the pair breaks the channel down because it will change the trend if it did. If the pair breaks the support level 128.64 down we have to sell the pair and keep the take profit level at 125.50.
This week the market is poor in terms of hot economic news from the European Union or Japan. On Friday Japanese banks will be closed for Mountain Day.
