EUR/JPY Major Resistance at Daily Chart

12/09/2020 07:57:00 AM (GMT+6)

Major Resistance on EUR/JPY

This week, it looks like traders are now putting more weight on fast-growing covid case / hospital admissions than any fresh vaccine or stimulus news, meaning the yen could support the euro more if the overall environment turns negative.

If we see the ECB’s extended stimulus, the risk environment remains negative (or if there is a financial market risk), and fails to break the 127.00 handle, I take this as a brief signal of EUR / JPY.

If the ECB expands as expected, the euro rally will take place, but traders will likely set prices in the European recovery. If by then the risky environment changes to a positive one (e.g., based on the development of stimulus / positive epidemics), I will keep an eye on EUR / JPY for a break above 127.00 to go long.
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