Our free forex signals service trade today is a buy order on the EUR/JPY pair.
The EUR/JPY pair is trading in the red at 131.80 level and it has shown some oversold signs. Still, it’s premature to talk about a potential upside movement as the pressure is still high. Personally, I’m looking for longs if the price fails to make a new lower low.
The price action has printed a continuation pattern, but we’ll have to wait for confirmation before considering going long. Today, the Japanese banks were closed in observance of Culture Day.
Fundamentally, the EUR/JPY was still under bearish pressure as the Euro-zone Final Manufacturing PMI, German Final Manufacturing PMI, and the Spanish Manufacturing PMI indicator were reported worse than expected in yesterday’s trading session.
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Eurozone Unemployment Rate 7.4%
The Euro is still under pressure even if the Euro-zone Unemployment Rate dropped from 7.5% to 7.4% as expected. Moreover, the Spanish Unemployment Change and the Italian Monthly Unemployment Rate have come in better than expected.
Technically, the EUR/JPY pair has found support at 131.57 level and on the channel’s downside line. The pattern could represent a continuation one if the rate makes an upside breakout.
As you can see, the price has found strong support also on the 23.6% retracement level. It has printed a bullish engulfing signalling upside pressure.
Staying above the 131.57 static support and making a valid breakout through the downtrend line could activate an upside continuation.
Free forex signals – BUY EUR/JPY at 132.48
Free forex signals entry price and take profit
Instrument: EUR/JPY
Order Type: BUY STOP
Entry price: 132.48
Stop Loss: 131.40
TP1: 134.11
My Risk: 1%
Risk / Reward Ratio: 1 / 1:5
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