EUR/JPY: trade ideas (July 7)
By Felipe Erazo
EUR/JPY has made a retracement to the resistance level of 139.21, where is located the 61.8 Fibo level at the H4 chart and now, it is very likely that this pair begins to fall toward the support level of 137.79, which is the closest level. This bearish pressure is enhanced by the dynamic resistance offered by the 500 EMA (red line).
If the EUR/JPY manages to make a breakout in the support level of 137.49, the next target would be the 136.60 level, which coincides with the 100.0 Fibo extension level. On the other hand, if the EUR/JPY manages to make a breakout on the resistance level of 139.59 (78.6 Fibo level), our bearish outlook will be invalidated for this pair.
Trading recommendations: Place sell orders when the EUR/JPY does a breakout at the support level of 137.49, with take profit at 136.60. Look for long orders when the EUR/JPY tries to get consolidated above the 139.59 level.