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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
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
More View more
Real Time News
  • USD/MXN drops back into its recent range as investors await further guidance from economic data. Get your weekly Mexican Peso forecast from @HathornSabin here:
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here:
  • What is your forex trading style? Take the quiz and find out:
  • Australian Dollar plunged for a fifth week but held key downtrend support at the yearly lows. Get your weekly AUD technical forecast from @MBForex here:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Last week’s march higher in EUR/USD may well extend further after Friday’s Eurozone economic statistics that will likely turn the ECB more hawkish on monetary policy. Get your weekly Euro forecast from @MartinSEssex here:
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Cable is pulling off after a strong run; near-term weakness may be the theme before trying to rally again. Get your weekly GBP technical forecast from @PaulRobinsonFX here:
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here:
EUR/JPY Technical Analysis: Stubborn Support Snaring Breakout Victims

EUR/JPY Technical Analysis: Stubborn Support Snaring Breakout Victims

James Stanley, Senior Strategist

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

  • EUR/JPY Technical Strategy: Down-trend showing tepidly bearish price action as we operate near a long-term support zone.
  • After a quick breach of support after last week’s NFP report, price action has jostled higher, finding intra-day higher-low support.
  • If you’re looking for trading ideas, check out our Trading Guides. And if you want something more short-term in nature, check out our SSI indicator.

In our last article, we looked at a descending wedge formation on the daily chart of EUR/JPY as price action’s declines continued to be thwarted by a long-running zone of support. This zone of support initially came into the picture in February as risk aversion was running high and traders were looking to load safe-haven bets into long-Yen positions. A quick bounce ensued shortly thereafter, with swing-high resistance coming in around the 127-psychological level later in the month; and since then price action has continued to make lower-highs while bouncing off of this well-tested zone of support from 121.50 to 122.50.

Friday’s NFP report had the potential to re-stoke risk aversion, and price action in the Yen indicated as such in the immediate aftermath of the print as we finally saw prices break below 121.50, printing a lower-low at 120.81 ahead of last week’s close. But since, we’ve seen bullish price action thus far on the new week, and with yet another false down-side breakout in EUR/JPY, traders should approach short-side continuation strategies with caution. On the chart below, we’re taking a look at the ‘bigger picture’ move in EUR/JPY, as defined by a down-ward sloping trend channel that’s caught a considerable amount of EUR/JPY price action over the past eight months.

EUR/JPY Technical Analysis: Stubborn Support Snaring Breakout Victims

Chart prepared by James Stanley

On the chart below, we’ve moved in to the 4-hour time frame to examine that most recent bout of bullish price action.

EUR/JPY Technical Analysis: Stubborn Support Snaring Breakout Victims

Chart prepared by James Stanley

Notice on the above chart the multiple tests of support around 121.50. This highlights numerous price action tests as sellers were thwarted by buying pressure, and this could mean a continuation of the top-side move, at least temporarily until we find a level at which sellers are willing and able to re-enter the equation.

For traders looking to re-load on the short-side of EUR/JPY, a deeper retracement to resistance at 123.08 (38.2% Fibonacci retracement of the secondary move, taking the 2008 high to the 2012 low) or in the zone from 124-124.25 (prior price action swing) could offer a more attractive setup as there would be additional distance to work with targets back down to the 121.50-122.50 zone of support. Until then, be careful of false breakouts on the down-side of price action.

--- Written by James Stanley, Analyst for

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.