The EUR/JPY is trading bearish, falling from 118.650 to 117 area in the wake of stronger Japanese yen and weaker Euro. On the fundamental’s front, most of the news is anti-Euro, and it’s likely to drive the selling trend in the Euro.
The Italian administration is ramping up spending projects “significantly” to lessen the financial consequence of the coronavirus. The global central banks are on the move, so the Italian finance department is also pushing considering the death toll, which has now surpassed 12,000.
At the same time, the headline Italy Manufacturing Purchasing Managers’ Index, which measures the progress in overall business conditions – dropped from 48.7 in February to 40.3 in March to indicate a decline in the health of the Italian manufacturing division for the eighteenth month running.
On the technical front, the EUR/JPY currency pair is likely to find immediate support at 116.800, but it’s less likely to be held as the pair seems to fall further until 115.350 level. It’s the same level that supported the EUR/JPY pair back on March 9 and 12. Closing of the doji candle or bullish reversal candle will be an indication that investors are respecting this level and may drive buying sooner or later.
Entry Price: Buy Limit at 116.307
Take Profit 117.307
Stop Loss 115.707
Profit & Loss Per Standard Lot = -$560/ +$934
Profit & Loss Per Micro Lot = -$56/ +$93.4