EUR/JPY: trade recommendation
By Felipe Erazo
At the H4 chart, the EUR/JPY has found strong resistance at 50.0 Fibo level (138.91), so this pair is trying to make a pullback to continue the bearish road that had been building since the 140.08 level. If the EUR/JPY manages to make a breakout in the support level of 138.29, it’s expected to fall to the level of 137.74.
However, while this pair remains above the 23.6 Fibo level, it is advisable to wait for the EUR/JPY make a breakout on the resistance level of 139.19 (61.8 Fibo level), to see the strengthening of a bullish trend in this pair. The CCI is maintained between the 100 and -100 levels, so there is not a clear divergence currently in this indicator.
Trading recommendations: Place sell orders only if the EUR/JPY does a breakout at the support level of 137.48, with take profit at the 136.58 level. Also, you can place buy orders only if this pair does a consolidation above 78.6 Fibo level (139.58).
Chart. H4 EUR/JPY