The EUR/JPY is trading with a bearish bias around 117.150, holding below strong support to become a resistance level of 117.350, which is extended by the descending triangle pattern.
The COVID 19 updates are consistently impacting the exchange rate of the EUR/JPY pair. French Prime Minister Edouard Philippe said on Wednesday, healthcare staff in France’s most stricken regions by the new coronavirus would receive a bonus of 1,500 euros ($1,637).
Alongside this, they will receive higher interest than normal for their extra hours, which is positive news for the Euro, but at the same time, it’s increasing cautions of traders about the future of the Eurozone. Eventually, this drives selling bais in the pair, as investors move their investments in the safe-haven currencies such as Japanese yen.
Technically, the EUR/JPY is following a narrow range, which can extend selling bias until 116.450. On the 4 hour timeframe, EUR/JPY has violated the EUR/JPY support level of 117.350, and this can lead the pair towards an initial target level of 116.765 and 116.380. The MACD is holding below 0, suggesting bearish bias among traders. While the 50 periods, EMA continues to support the selling trend in the pair.
Entry Price: Sell at 117.179
Take Profit 116.479
Stop Loss 117.779
Profit & Loss Per Standard Lot = -$560.4/ +$653.8
Profit & Loss Per Micro Lot = -$56/ +$65.38