We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
Euro May Fall Against Japanese Yen If Chart Setup Plays Out

Euro May Fall Against Japanese Yen If Chart Setup Plays Out

2020-01-17 10:07:00
Ilya Spivak, Sr. Currency Strategist
Share:

EUR/JPY TRADING Strategy: BEARISH

  • Euro may be forming a top vs Japanese Yen below 123.00 level
  • Break of Rising Wedge floor sought as confirmation of reversal
  • Repeat of 2-year downtrend dynamics implies move sub-111.00

The Euro may be preparing tun lower against the Japanese Yen following a three-month recovery, resuming a two-year downtrend. The rise has taken the shape of a Rising Wedge chart pattern, which typically carries bearish implications. A Shooting Star candlestick on a test of resistance in the 122.50-66 area coupled with negative RSI divergence speaks to ebbing upside momentum, which may precede the formation of a top.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Ilya Spivak
Traits of Successful Traders
Get My Guide

A daily close below Wedge support – now at 120.51 – would make a compelling case for confirmation of reversal, which traders may interpret as triggering an actionable selling opportunity. Neutralizing selling pressure in earnest probably requires a push above the outer layer of downtrend resistance set from February 2018, which now coincides with the top of the at 123.30-124.28 inflection zone.

Euro vs Japanese Yen price chart - daily

EUR/JPY daily chart created with TradingView

Averaging prior downswings within the same trend to establish something of a baseline for what the next move lower might look like implies a decline of 9.78 percent. Extrapolating such a descent from the most recent swing high puts prices just below the 111.00 figure. Intriguingly, it would also place them within a hair of the major June 2016 swing bottom at 109.54.

Euro May Fall Against Japanese Yen If Chart Setup Plays Out

EUR/JPY weekly chart created with TradingView

EUR/JPY TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.