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
Oil - US Crude
Bullish
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
More View more
Real Time News
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/JTw3w7KYXP
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.10% 🇪🇺EUR: -0.15% 🇯🇵JPY: -0.18% 🇬🇧GBP: -0.39% 🇳🇿NZD: -0.56% 🇦🇺AUD: -0.69% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/a8XYJHybtN
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: -0.05% Oil - US Crude: -0.25% Gold: -0.77% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/C66zBofenc
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.72%, while traders in France 40 are at opposite extremes with 71.64%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/6QmJTzlrho
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/8PhqKCpyzf
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.03% France 40: 0.03% US 500: 0.02% FTSE 100: -0.06% Germany 30: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Mkxtacawl4
  • AUD declined into the weekend, wiping out earlier gains against USD #IronOre tumbled this week, with futures on #SGX down about 15%! -> 3-month low China is further cracking down on steel output to ebb pollution Iron ore is a key AU export to China, posing a risk #AUD $AUDUSD https://t.co/NSDM7Ln5sA
  • Further your forex knowledge and gain informed analyses from industry leaders with our free guides, available today. Download the Q3 guide:https://t.co/7G7pWntiyY https://t.co/gAlFxO9Fl4
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.11% Silver: -0.53% Gold: -0.95% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/qTX1rsmxSM
  • Mexico’s second quarter GDP grows 1.5% q/q and 19.7% y/y, slightly below market expectations. Get your $USDMXN market update from @DColmanFX here:https://t.co/s3i0GDWXpr https://t.co/CD7aQhOG19
EUR/JPY Technical Analysis: A Zone of Confluence Awaits

EUR/JPY Technical Analysis: A Zone of Confluence Awaits

James Stanley, Senior Strategist

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

Talking Points:

  • EUR/JPY Technical Strategy: Still in the aftermath of a momentous drop in prices on the back of Brexit.
  • After such an out-sized directional move, traders need to be on guard against strong retracements before staging continuation plays.
  • 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 EUR/JPY continuing to operate near a long-term zone of support from 121.50-122.50. Near the middle of this zone, we have the 50% Fibonacci retracement of the major move in the pair, taking the 2012 low up to the 2014 high at 121.94. This had been a key level, offering numerous support inflections in the very recent past; and the importance of this level was accentuated during the chaos around the Brexit referendum. Going into the vote, most markets were reflecting an apparent expectation for a ‘remain’ vote winning-out. Risk assets like EUR/JPY were rallying under the expectation that British voters would elect to continue with the status quo. But as it became evident that this wasn’t likely going to be the case, risk aversion began to show. The swing-high on EUR/JPY came-in within five pips of this Fibonacci level before dropping dramatically for the next seven hours.

And this wasn’t just a standard sell-off: In that seven-hour window, EUR/JPY dropped by -10.5%, which is a gargantuan movement for a currency pair in that period of time. This is a ‘game-changing’ type of move for price action, and this is something that should urge more caution than excitement in traders, as the nearly ~500 pips retracement seen off of those lows is but a mere 38.2% of that post-Brexit move.

For traders looking to jump on the short-side of EUR/JPY, the zone between 115.00-115.60 could be extremely interesting. The price of 115.00 is a ‘major psychological level,’ while 115.37 is the 61.8% retracement of the same Fibonacci retracement we looked at earlier. At 115.48 we have the prior swing low, and a bit deeper at 115.59, we have the 50% Fibonacci retracement of the post-Brexit move; so there are numerous reasons for sellers to re-enter the picture here if we are going to see the down-trend resume.

EUR/JPY Technical Analysis: A Zone of Confluence Awaits

Chart prepared by James Stanley

--- 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