The EUR/JPY pair has rallied a bit over the last several hours, and I believe it is trying to cause a bit of a bounce from extreme lows. Because of this, I am watching this pair, as the Euro itself found significant support against the USD at 1.05 or later in the day.

Today’s EUR/JPY signal

Risk 0.33%

Trade should be taken during Asian or European hours

Long Trade 1

Buy EUR/JPY at 119.85

Stop loss at 119.70

Take profit at 120

EUR/JPY Analysis

This is a countertrend trade, and as a result I am not overly excited about it. This is why I suggest only risking 0.33% of your account. However, it looks as if the Japanese yen is going to be sold off, so I feel that this move is probably less about the EUR and more about the JPY. As far as economic announcements are concerned, most that happened during the day can only benefit the EUR as opposed to hurting it. German business climate numbers will be interesting as well as some other mid-grade announcements.

(Click on image to enlarge)