Skip to Content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Euro May Fall Against Japanese Yen If Chart Setup Plays Out

Euro May Fall Against Japanese Yen If Chart Setup Plays Out

What's on this page


  • 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 vs Japanese Yen price chart - weekly

EUR/JPY weekly chart created with TradingView


--- Written by Ilya Spivak, Currency Strategist for

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.