Not feeling like trading the U.S. dollar today? I gotchu!
EUR/JPY looks ready to test a potential area on the 4-hour chart
If you’ve been paying attention to yen pairs, then you’ll know that EUR/JPY has fallen a long way from its 158.00 resistance zone.
The pair is trading closer to 154.50, which is not far from the S2 (153.81) Pivot Point level in the 4-hour time frame.
But wait, there’s more!
As you can see, EUR/JPY is also not far from the 50% Fibonacci retracement of June’s upswing, a 200 SMA retest, and a trend line support that’s been around since April.
Buying at current levels would yield a pretty good risk ratio especially if you place your stops just below the trend line and aim for EUR/JPY’s previous highs.
If you’d rather sell the euro against the yen, then you might want to do it after EUR/JPY breaks below the support zone that we’re watching.
Just make sure that you’re trading a legit downside breakout instead of a fakeout if you’re shorting EUR/JPY!