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EURJPY is retracing back from 61.8% Fibonacci level

Tuesday, February 5, 2019 4:00 PM GMT

Earlier today, EU Markit PMI Composite slightly increased vs previous month (Actual: 51.0, Previous: 51.1), while EU Retail Sales declined to 0.8% from 1.8% in the previous month. Today’s agenda doesn’t include any other major news related to the pair.

Reviewing the daily technical aspect, EURJPY verified our previous analysis, breaking out above the horizontal channel (C1). Currently, the pair is retracing back from the 61.8% Fibonacci resistance level and is approaching the daily (S1). Additionally, Stochastics is testing the overbought zone for 3rd time, while RSI is moving within the 50 to 60 zone, which is supposed to act as a retracement zone during a downtrend (since end of September).


Overall, the setup indicates a potential fluctuation between the trendline (T2) and the trendline (T1). If price approaches the trendline (T1), then the market may push the pair lower, offering a selling opportunity.

On the other hand, a breakout of the trendline (T1) to the upside means that the scenario is busted.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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