The EUR/JPY is consolidating in a narrow trading range of 122.750 - 122.160, as investors are still looking for solid reasons to trade the event. The Federal Budget Balance for the month of December came in as -13.3B from expected 5.0B and supported the US dollar, which ultimately decreased the demand for safe-haven Japanese yen.
At 15:50 GMT, the NFIB Small Business Index for the month of December dropped to 102.7 from expected 104.9 and weighed on the US dollar. On the other hand, there was a conference organized by the London School of Economics & Political Science in which the President of Federal Reserve Bank of New York, John Williams, refrained from commenting on the monetary policy or the economic outlook.
The US & China will sign phase-one of the trade deal on 15th January in Washington, and this has raised the trade optimism around the global markets. The details of this deal will also be revealed, and traders are waiting for them to take further action accordingly. If the details match the trader’s expectations, then the pair EUR/JPY will further surge, but if not, then we will see a drop in EUR/JPY prices.
|
Support |
Pivot Point |
Resistance |
|
122.06 |
122.28 |
122.62 |
|
121.71 |
122.84 |
|
|
121.15 |
123.41 |
EUR/JPY is consolidating in a narrow trading range of 122.750 - 122.160, and violation of this range can extend further trend in the market. A bullish breakout of 122.750 can drive buying until 123.300, while bearish breakout of 122.160 can lead EUR/JPY prices towards 121.740.
EUR/JPY - Trade Plan
Buy Above 122.45
Take Profit 122.75/122.95
Stop Loss 122.15
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