Overview
Trend: Shock
Trading direction: long
Deadline: 2021.3.16 21:00
Admission: 129.75
Target bit: 130.60
Stop Loss: 129.12
Fundamentals
Although the conflict between Russia and Ukraine continues, the tension between Russia and Ukraine has cooled down significantly in recent days, and the two sides are currently negotiating the fourth discussion, which has led to an improvement in risk sentiment, and the yen has gradually lost its hedging advantage and weakened rapidly. Meanwhile, European currencies got some boost after the war between Russia and Ukraine cooled, but the euro’s gains were still limited due to concerns about the European Central Bank’s relatively dovish tendencies and a European recession.
The Federal Reserve will hold an interest rate meeting this Wednesday. The dollar has been fully digested in the previous interest rate hike expectations. After the interest rate hike boots land, it may weaken, which will lead to a rebound in non-U.S. currencies. Overall, short-term EURJPY still maintains a bullish rebound.
technical
From the daily chart, EURJPY fell sharply after the outbreak of the Russian-Ukrainian war. Currently, it has rebounded sharply, and the price has returned to the middle of the previous parallel channel.
From the 1H chart, EURJPY fluctuated higher and had an accelerating trend.
In terms of operation, the main focus is to go long on dips. In the day, you can try to go long in the wet position near the price of 129.8. The indicator RSI shows that the price has entered the overbought area, and it is not suitable to fight. The pressure level above the target is 130.6, and the stop loss is set below 129.25.
Downside Support: 129.25/129.00/128.72
Upside resistance: 130.60/132.00
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