How to trade EUR/JPY?
By Felipe Erazo
At the beginning of last week, remember that the EURJPY found resistance near the 200 and 500 EMA on the H4 chart. Now, the bearish bias is dominating this pair, because the EURJPY has dropped to the level of 137.02. Corrective movements in this pair have been extended to the 23.6 Fibo level (138.26) and now, it is very likely that the EURJPY rise to the resistance level of 138.89 (50.0 Fibo level).
At that level, EURJPY is expected to make a pullback on that resistance level and later extend its fall to the level of 136.51, where 100.0 Fibo expansion level is located. By now, you should wait for the EURJPY to form a trend-continuation pattern in 50.0 or 61.8 Fibo level, to keep following the overall bearish trend in this pair.
Trading recommendation: Place sell orders at the resistance level of 138.89 (50.0 Fibo level), with take profit at the 137.42 and 136.51 levels. Also, you can place sell orders at the 61.8 Fibo level (139.17), with stop loss at 139.57 (78.6 Fibo level) and the same take profit levels (137.42 and 136.51).
Chart. H4 EUR/JPY