Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EURJPY Long Scalps at Risk Below FOMC High- Interim Support 130.60

EURJPY Long Scalps at Risk Below FOMC High- Interim Support 130.60

What's on this page

Talking Points


Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • EURJPY rebound now testing initial resistance 131.35/78
  • Breach targets resistance objectives at 132.94-133.20 & Dec TL resistance
  • Daily support at 129.89 / median-line (near-term bullish invalidation) backed by 128.73
  • Look for a 50/60-hold in momentum into these resistance targets
  • Pending RSI support trigger- divergence – Break below would be bearish
  • Event Risk Ahead: Japanese Consumer Price Index (CPI) tomorrow

EUR/JPY 30min

Notes:EURJPY is testing a key near-term resistance zone defined by the FOMC spike high, the 61.8% extension of the advance off the monthly low, the 50% retracement of the February decline and basic TL resistance dating back to the March 24th high at 131.35/79. Longs into this region are at risk near-term (bearish invalidation) with a break below interim support at 130.60 / lower median-line parallel (blue) shifting the scalp bias to the short-side of the pair targeting the weekly open at 129.89 (also the exact 38.2% retracement). Subsequent support objectives eyed at 129.31 (weekly low & 50% retrace) & 128.75.

Bottom line: we’re looking for a reaction off this resistance level with a break of the pending RSI support trigger alongside a move sub-130.60 targeting the weekly open. A breach of the 131.79 barrier invalidates our near-term bias targeting objectives at 132.28 & key resistance at 132.95-133.20. Caution is warranted heading into CPI data out of Japan later this week with the release likely to fuel added volatility in Yen crosses.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Relevant Data Releases

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

To contact Michael email or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)

Interested in learning about Fibonacci? Watch this Video

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