In our recent report about the EUR/JPY on March 14 we recommended selling the pair around 122.50 when it was trading near the downside trend line. We saw the pair has declined by more than 300 pips and achieved our targets, so today we’ll have a look at the same pair again because it may change the future trend.
The pair is trading now at 120.10 which is a strong support area because it has a trend line which started on October 21. It also has a correction percentage of 61.8% Fibonacci from the rising wave which started from 118.20 to 122.85, so we predict that it will move up a little in this tight area. Nevertheless, the pair is still trading below the SMA50 which is a resistance moving level. The MACD is still in a sell signal but the Stochastic indicator made an accumulation movement and gave us a buy signal which is considered early for us.
The Next Few Days
From this analysis, we can close our sell positions with +320 pips and take a buy order after the pair touches the rising trend line and keep our first target at 120.80 and the second one at the downside trend line at 122.15 - that is in case the pair is still trading above 119.30.
This week the market doesn’t have hot news from the EU or Japan, so the market will not be volatile in the next trading days.
