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EUR/JPY Bullish resilient?

After the flash crash earlier this year across JPY crosses on the back of risk off after Apple revised its revenue forecast lower following slowing demand growth in China, price have look to all of the crash in subsequent weeks. Despite such revision from Apple and other S&P 500 companies missing their estimates, global market risk is seen to have increased amidst “progressive” talks amongst necessary parties. This has seen a breath of bullish fresh amongst JPY crosses.

One currency pair that have shown its bullish resilience on the back of a JPY weakness is the EUR/JPY, although we don’t have any concrete evidence for a EUR strength however we choose to ride its bullish wave on the shorter-term.

Technically, the EUR/JPY is trading within a shorter-term uptrend channel and is currently bouncing off the support area of this channel (highlighted in grey) [see H1 Chart]. Traders can look to go long on this note.

Fig 1: Hourly (H1) EUR/JPY Chart

 

EUR/JPY

Buy @ current market price (instant execution)

Stop: 124.56

Limit: 126.00

 

As mentioned above, fundamentally we are tilted to bearish side for the EUR as current macro data doesn’t look all rosy. Thus, traders are advised to use the stop order given as sentiment can abruptly change nullifying our current outlook.

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