EUR/JPY: Expecting Shorts As Yen Is Considered A Safe Haven During Turbulent Times
Hello traders, hope you have all had a fruitful Monday. Let's have a quick look at EUR/JPY to try and establish where the pair is heading next.
The pair is currently trading at 124.77 during the London session. Since the start of the year, we have not broken through the massive barrier we have found at our support level of 124.000. On the weekly time frame, we printed a bearish engulfing in the first week on March followed by another bearish engulfing candlestick last week.
Looking at the 4-hour time frame we do have a minor daily resistance of 125.50 where I do expect the price to bounce from before creating new lows around 122.00. However what would invalidate this is a break of our descending trendline.
The Japanese Yen is a safe haven due to the economic uncertainty, therefore, investors often shift their money to the like Gold and Yen, which is why I favour downside for this pair.