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.

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
EUR/USD
Bearish
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
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
Wall Street
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
Gold
Bearish
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
Bearish
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
USD/JPY
Bullish
More View more
Real Time News
  • Copper prices may continue to push higher despite a worrying surge in Covid-19 cases and the lack of progress in Congressional stimulus negotiations. Get your #copper market update from @DanielGMoss here:https://t.co/N2OW566nID https://t.co/VJfjTNDdZI
  • The US weekly jobless claim number came in at 870k, in line with expectations. This marked a 4th consecutive weekly reading below 1 million mark, but the rate of improvement in the jobs market appeared to have slowed recently. https://t.co/7pEUQk80C8
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/MSOw9DeSxe
  • Wall Street Futures Update: Dow Jones (+0.415%) S&P 500 (+0.417%) Nasdaq 100 (+0.466%) [delayed] -BBG
  • - Trump popularity slowly returning despite a surge of US-based coronavirus cases - Democrats drafting $2.4 trillion aid package as urgency for more stimulus swells - #AUDUSD testing key support at 0.7018 – will a break here accelerate the selloff? https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/09/24/AUDUSD-at-Key-Support-Trump-Popularity-Edging-Up-Despite-Virus-Spike.html
  • Looks like the #nifty50 is heading for its worst week since early May (-6.08%), over 4 months ago, granted we still have Friday's session left $USDINR has also been climbing lately Might this continue? Stay tuned for a technical special later today! https://t.co/1vdbgAWs0s
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/vdL3w1KxIZ
  • Australian Dollar Outlook - via @DailyFX: AUD/USD bulls search for support around two-month lows as market sentiment seemingly improves, but the Aussie could remain under pressure as volatility lingers. Full Analysis - https://www.dailyfx.com/forex/market_alert/2020/09/24/australian-dollar-outlook-aud-usd-drops-to-fresh-two-month-low.html $AUDUSD $AUD #FX #Forex #Trading https://t.co/HJqlMqAvt2
  • $USDCNH reversing lower after bursting over 1.5% from the yearly low. Could this be indicative of firming market sentiment? https://t.co/9CDc2Lukuc
  • Heads Up:🇬🇧 Gfk Consumer Confidence (SEP) due at 23:01 GMT (15min) Expected: -27 Previous: -27 https://www.dailyfx.com/economic-calendar#2020-09-24
EUR/JPY Technical Analysis: A Brisk Turn-Around with Risk Assets

EUR/JPY Technical Analysis: A Brisk Turn-Around with Risk Assets

2015-10-06 17:52:00
James Stanley, Strategist
Share:

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • EUR/JPY continues to trade within the symmetrical wedge formation that’s defined price action since May of 2015.
  • Continued choppiness whilst price action remains confined in this wedge leaves EUR/JPY direction-less, for now; but should the wedge break, a big move will likely follow.

In our last piece, we discussed the continued confinement of EUR/JPY to the symmetrical wedge that’s been established by connecting the April-September 2015 lows for support, and the June high to the August high for resistance. Since the August highs and September lows have been set, thereby creating this price action formation, the symmetrical wedge has yet to break; although that almost came to fruition on Friday as a horrific NFP report sparked a quick run of risk aversion.

This wave of risk-aversion sent EUR/JPY spiraling lower as panic and fear began to set in for the global economy. But as normalcy became restored (normalcy for a ZIRP-fueled environment) and stock prices began moving higher, so did EUR/JPY; establishing support, yet again, off of the 133.50 zone that had provided the market with a higher-low in the previous week. This is the 50% retracement of the most recent major move in the pair, taken from that same April low to June high.

Until this wedge breaks, near-term direction in EUR/JPY remains congested. Traders can look to utilize mean-reversion logic by selling resistance within the wedge, and closing shorts and buying support after prices move lower. For this type of strategy, resistance could be sought out at the 137-137.50 area, while support could be seen from 133.50-134.00.

Once the wedge breaks, EUR/JPY becomes considerably more attractive, as this pair has a tendency to trend and after five-plus months of congestion, the accompanying move will likely be outsized. On the down-side, this would be a break below 133.15-133.40 (the lows of the past two weeks), and on the up-side, this would be looking for a price break above 137.50 (projection of resistance trend-line to tomorrow’s Daily bar).

Once either of these levels are eclipsed, trend-following logic could again be utlilized; but until then, be careful not to get caught in the chop.

EUR/JPY Technical Analysis: A Brisk Turn-Around with Risk Assets

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES