FBS: Trading recommendations for EUR / JPY
Tatiana Norkina, an analyst at FBS
The main intrigue of the day was tied to the level of 137.10 , as we supposed yesterday. Inability of the bears to go below this level turned out to be profitable for buyers whose initiative has been supported by fundamental data, greatly weakening the Japanese currency today. The pair is currently testing a strong resistance at 140.40 area.
Simultaneously, the market is now extremely overbought, what’s indicated by the RSI the value of which is significantly higher than 70. Therefore, you should abstain from purchases in the nearest future and you can renew them after a full correction to 139.30.
Technical levels: Support - 139.30, 140.00; resistance - 140.40.
1. Buy - 139.30; SL - 139.00; TP1 - 140.20.