Home Forex Market Analysis Forex Signals EUR/JPY on a Bullish Run – Bullish Engulfing Plays!

EUR/JPY on a Bullish Run – Bullish Engulfing Plays!

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The EUR/JPY pair is trading with a bullish bias at 121.65 after violating the triangle pattern at 121.500 level. Above this, the pair are looking to go further higher until 122 level today. On the EUR side, the European Central Bank’s Governing Council Member and Bank of France Head Francois Villeroy de Galhau spoke dovish on weakened while saying that the coronavirus outbreak has permanently changed European economic policy and the non-conventional tools adopted by the central bank have now become quasi-conventional.

However, the upbeat stocks have overshadowed Galhau’s dovish comments and helped the shared currency stay bid so far. It should be noted that the second wave of the coronavirus outbreak is picking a further pace and could stop the still-nascent global economic recovery as per the ECB.

At the coronavirus front, almost 15 states of the U.S. have reported a record hike in new cases of COVID-19, which has infected approximately 3 million people in the U.S. and killed about 130,000 so far. It is worth mentioning that Texas registered the record high coronavirus figures for seven consecutive days. Moreover, no progress came out of the virus vaccine, which becomes the key factor that capped further gains in the currency pair.

Whereas, the World Health Organization (WHO) reported a record single-day rise of 200,000 in global coronavirus cases whereas Spain imposed lockdown in the north-western region of Galicia, which also exerted some downside pressure on the currency pair.

Technically, the EUR/JPY carries a bullish bias over the 121.500 level. The RSI and MACD are suggesting odds of bullish trend continuation in the EUR/JPY pair, and these can lead the pair towards 122 level. For now, the pair has closed a Doji pattern, suggesting the odds of slight bearish correction in the EUR/JPY pair, but very soon, the bullish trend may trigger again. Let’s stick to the below trade plan.

Entry Price – Buy 121.763

Stop Loss – 121.363

Take Profit – 122.163

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

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