EUR/JPY Tests 50 EMA – Is It Poised to Reverse?

Due to May Day, the European markets are mostly closed, causing thin volatility and trading volume in the market. Yet, the markets are moving, and we may have a potential trade setup in the EUR/JPY.

EUR/JPY is extending a bullish retracement from the 124.00 area, already testing the 125.150 resistance. The market seems to buckle up for higher grounds, but the 50 EMA will be a hurdle here.

Support Resistance
124.63 125.16
124.33 125.39
123.81 125.92
Key Trading Level: 124.86

The recent candle is half bullish and half bearish, suggesting a neutral bias of traders. It also confirms that the traders are respecting this EMA. On the lower side, EUR/JPY can find support around 124.800 and 124.600 today.
Consider staying bullish above 124.850 with a stop loss below 124.500 and take profit around 125.250. The violation of 125.250 can extend bullish rally until 125.600 so you can consider it a second take profit.

Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

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