The EUR/JPY is trading bearish at 116.850, falling below the triple top resistance level of 117.500. The broad-based selling pressure of the Euro made it difficult for the EUR/JPY pair to come out of the negative territory. The 10 Year US Treasury bond yield added in the downfall of USD/JPY when it fell more than 2% on Friday.
On the other hand, the strategy to blame China for the outbreak of COVID-19 started weeks ago, and on Thursday, when Trump officially accused China of this and said that he would punish China for mishandling the outbreak by imposing tariffs, many other countries showed their support to him as well.
Technically, the EUR/JPY is holding above 116.580, having closed a Doji candle above 50 EMA support level of 116.600. Below this, selling bias remains strong, and it can lead the EUR/JPY pair until 115.450. On the 4 hour timeframe, EUR/JPY seems to violate the descending triangle support level of 116.600, and this can lead the pair towards an initial target level of 115.450. The MACD is holding above 0, suggesting bullish bias among traders. While the 50 periods, EMA continues to support the selling trend in the pair.
Entry Price: Sell at 116.962
Take Profit 116.462
Stop Loss 117.462
Profit & Loss Per Standard Lot = -$467.5/ +$467.5
Profit & Loss Per Micro Lot = -$46.7/+$46.7