Description
⋅ Financial markets will remain closed across Europe, major risk-off which is support safe-haven yen demand is driving price action in the pair.
Risk-off dominates amid tensions in the Korean peninsula and as US bombing Afghanistan continue to spook markets.
EUR/JPY edges lower from session highs at 116, bias heavily bearish.
The pair finds strong trendline support at 115.70, break below could see drag upto 114.89.
Momentum studies are heavily bearish, but RSI and Stochs are deeply in oversold territory so some caution advised.
Weekly charts are also heavily bearish and so we would use upticks as opportunity to go short.
Support levels - 115, 114.89 (61.8% Fib retrace of 109.205 to 124.094 rally), 114.01 (Nov 3rd 2016 low)
Resistance levels - 116.28 (5-DMA), 116.65 (50% Fib), 117.74 (200-DMA)
Comment
⋅ EUR/JPY edges higher from 114.85, bias lower, stay short, next bear target 114.
Tense standoff between the US and North Korea continues despite North Korea’s failed missile launch.
Risk-off tone could worsen as the week progresses, keeping safe-haven assets well in demand.
Price is moving with a clear bearish trend, more downside on cards.
but can you tell us where to open position? since i think it will go up a little bit after this heavy bearish