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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • The oil price breakout has extended into the first level of lateral resistance- risk for some ‘back and fill’ here but the outlook remains constructive. Get your #crudeoil market update from @MBForex here:https://t.co/jdNzvlgecz https://t.co/BEbFRujI3y
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.25%, while traders in Wall Street are at opposite extremes with 76.07%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/VMAlOp5nwM
  • Heads Up:🇺🇸 Fed Quarles Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-10-20
  • The New Zealand Dollar's reaction to its recent rate hike was tepid at best. However, it's tempo over the past week in particular has been an impressive one. $NZDUSD specifically running strongest 6-day rally since June 2020 https://t.co/qM8cvjLCkU
  • Dow hits new record high...boom! $DJI
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 2.81% Gold: 0.89% Oil - US Crude: 0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FiM78jjd0z
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.71% 🇦🇺AUD: 0.53% 🇨🇭CHF: 0.35% 🇬🇧GBP: 0.19% 🇪🇺EUR: 0.11% 🇯🇵JPY: 0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/o4Bg5hW0tn
  • #Oil Technical Forecast: Oil Eight-Week Rally Vulnerable- $WTI Levels ($USOil) - https://t.co/32p8cbyZVr https://t.co/PPWB11MbRh
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.45% US 500: 0.40% France 40: 0.01% Germany 30: 0.00% FTSE 100: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/brXwszjzBv
  • RT @jason_donner: Pelosi on if a framework can be reached by end of week: “Let’s see…we have met every milestone along the way in our timet…
EUR/JPY Weekly Technical Outlook: Euro Turns at Multi-year Support

EUR/JPY Weekly Technical Outlook: Euro Turns at Multi-year Support

Michael Boutros, Strategist

In this series we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. Euro has fallen nearly 5.5% year-to-date against the Japanese Yen with price reversing just ahead of multi-year uptrend support this week. Here are the key targets & invalidation levels that matter on the EUR/JPYweekly chart heading into the close of the month. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

New to Forex Trading? Get started with this Free Beginners Guide

EUR/JPY Weekly Price Chart

EUR/JPY Weekly Price Chart

Notes: EUR/JPY has been trading within the confines of this slope series originating off the July 2016 low. Parallels of this trendline have been instrumental in the last few major price reversals and the recent decline turned just ahead of the slope extending off the October 2016 high. Note that price has not registered a weekly close below this threshold all year.

The immediate support zone in focus is 127.57/75- a region defined by the October low-day close, the November open and monthly low, the 200-week moving average and the 2018 low-week close. A close below this threshold would risk substantial losses in EUR/JPY with such a scenario targeting 124.92 and more significant support confluence around the 50% retracement at 123.35/50.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line: EUR/JPY is trading just above critical weekly support with the immediate short-bias vulnerable heading into 127.57/75 / slope support. From a trading standpoint, a good region to reduce short-exposure / lower protective stops. For now, be on the lookout for possible price exhaustion on a move into the highlighted support zone with a breach above the descending parallel (dotted line) extending off the April highs needed to alleviate further downside pressure. Subsequent topside objectives stand at the 52-week moving average (currently 130.70s) with broader bearish invalidation at yearly trendline resistance. I’ll publish an updated EUR/JPY scalp report once we get further clarity on near-term price action.

Even the most seasoned traders need a reminder every now and then- Avoid these Mistakes in your trading

EUR/JPY Trader Sentiment

EUR/JPY Trader Sentiment
  • A summary of IG Client Sentiment shows traders are net-short EUR/JPY - the ratio stands at -1.53 (39.5% of traders are long) – bullish reading
  • Long positions are6.0% higher than yesterday and 3.8% higher from last week
  • Short positions are 1.6% higher than yesterday and 1.3% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EUR/JPY prices may continue to rise. Yet traders are less net-short than yesterday & compared with last week and the recent changes in sentiment warn that the current EUR/JPY price trend may soon reverse lower despite the fact traders remain net-short.

See how shifts in EUR/JPY retail positioning are impacting trend- Learn more about sentiment!

Relevant EUR/JPY Data Releases

EUR/JPY Economic Calendar

Economic Calendar– for the latest economic developments and upcoming event risk. Learn more about how we Trade the News in our Free Guide!

Previous Weekly Technical Charts

Learn how to Trade with Confidence in our Free Trading Guide

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

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com

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

DISCLOSURES