During Tuesday’s early European trading session, the EUR/JPY currency pair managed to extend its overnight bullish streak and drew some further bids around closer to the 125.00 level mainly due to the market risk-on mood, which tends to undermine the safe-haven Japanese yen and contributes to the currency pair gains. Hence, the market trading sentiment was being supported by the prospects of a COVID-19 vaccine.
Across the pond, the shared currency upticks also played a significant role in underpinning the currency pair. On the contrary, the long-lasting coronavirus woes in the U.S. and Europe keep challenging the upbeat market sentiment, which becomes the key factor that kept the lid on any additional gains in the currency pair.
On the contrary, the intensifying coronavirus woes across the globe and intensifying lockdowns restrictions in Europe and the U.S. keep challenging the upbeat market performance and become the key factor that kept the lid on any additional gains in the currency pair.
In the absence of the key data/events on the day, the market traders will keep their eyes on US ISM Manufacturing PMI for November and original comments from the Fed Chair’s Testimony for fresh impetus. In addition to this, the updates about the U.S. stimulus package will also be key to watch. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.
Daily Support and Resistance
S1 122.99
S2 123.8
S3 124.11
Pivot Point 124.62
R1 124.93
R2 125.44
R3 126.25
The EUR/JPY has violated the resistance level of 124.780, and above this, the pair has the potential to go after the 125.530 level. However, if the EUR/JPY pair fails to stay over 124.750 support, the odds of bearish reversal will also remain solid. The leading indicator, such as MACD is supporting the buying trend. Checkout a trade setup below.
Entry Price – Buy 124.898
Stop Loss – 124.498
Take Profit – 125.298
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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