EUR/JPY: Euro Yen Breaching 120.000, Where to next?
Good Afternoon Traders welcome back to EverythingFX.
The Euro is currently trading at 119.900 against the Japanese Yen during today's London session!
The Technical Floor members have been riding this Trade down since the rejection on the highs of 121.300 and are currently floating 150 pips in profit.
For starters, Let's take a look at the weekly timeframe! This is what you call a nice weekly bearish closure! Dropping down to the daily timeframe we have seen several drives into the highlighted zone in and around 120.350 which previously acted as a major level support till broken!
Dropping down to a 4-hour timeframe we have seen a potential re-test of the 120.000 handle before giving us a new leg to the downside with an overall swing target of 118.000! What would invalidate this bias is a daily break about 120.500 as that would send us back to the previous highs. It is however only Monday so we need to play the patience card this week!
Fundamentally/Economically, The main driver has been and will be the Trade negotiations between China and the US as they have been back and forth with each other for several weeks now! We had a Chinese Reporter at the start of this week stating that the US and China are close to a Phase 1 Agreement, Could this be true or speculation? Only time will tell. Stay tuned to our market news section, twitter feed and social media accounts!