By: John Ursus
Timeframe: D1
Recommendation: Long Position
Entry Zone: 136.90 – 137.90
Take Profit Zone: 141.80 – 142.30
Stop Loss Zone: 134.90 – 135.90
The EURJPY has corrected sharply over the past four trading weeks. The correction took this currency pair from an intra-day high of 145.67 to an intra-day high of 136.21. After the EURJPY reached its most recent intra-day low it attempted to rally higher and tested its resistance level before a slightly downward sloping trend developed where intra-day highs were limited to the resistance posted by the Fibonacci Retracement level.
The interest rate cut by the European Central Bank pushed the EURJPY into its current correction. Forex traders are advised to watch out for potential long entry opportunities below 138.00 as the EURJPY is currently approaching a very important support level which previously halted a correction. It is expected that current support will be strong enough to reverse the current correction.
