Our free forex signals service trade today is a buy on the EUR/JPY pair. The EUR/JPY pair retreated a little after an amazing rally. The decline could help us to catch a new upside movement. Still, we’ll have to wait for confirmation before deciding to go long.
The price has slipped lower in the short term also because the Euro-zone Trade Balance was reported at 11.1B even if the traders have expected potential growth from 13.5B to 11.1B.
The Italian Trade Balance and the French CPI indicators came in worse than expected as well on Friday.
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JP225 (Nikkei) Seems Oversold
The Japanese Yen has managed to rebound and recover a little as the Japanese stock index, the Nikkei, has found resistance and now it has turned to the downside. When the Nikkei drops, the Yen is somehow expected to appreciate versus its rivals.
In the short term, the technical factors could drive the price only because we don’t have significant fundamentals these days.
As you can see on the h4 chart, the EUR/JPY is trapped within a minor down channel, within a flag. This chart formation is seen as a continuation pattern. Making a valid breakout from this structure could announce an upside continuation. Personally, I believe that only a new lower low, a bearish closure below 132.15 low could activate more declines and could invalidate the bullish scenario.
Free forex signals – BUY EUR/JPY at 132.73
Free forex signals entry price and take profit
Instrument: EUR/JPY
Order Type: BUY STOP
Entry price: 132.73
Stop Loss: 132.11
TP1: 133.61
My Risk: 1%
Risk / Reward Ratio: 1:1.4
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