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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
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
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • 🇯🇵 Tertiary Industry Index MoM (FEB) Actual: 0.3% Previous: -1.7% https://www.dailyfx.com/economic-calendar#2021-04-20
  • (Special) Canadian Dollar Analysis, Will Momentum Continue? USD/CAD, GBP/CAD, CAD/JPY #CAD $USDCAD $GBPCAD $CADJPY https://www.dailyfx.com/forex/technical/article/special_report/2021/04/20/Canadian-Dollar-Analysis-Will-Momentum-Continue-USDCAD-GBPCAD-CADJPY.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/k9OXz7Xc0G
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UfoNfSgu16
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.44% 🇳🇿NZD: 0.38% 🇨🇦CAD: 0.30% 🇨🇭CHF: 0.05% 🇯🇵JPY: 0.03% 🇬🇧GBP: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/LY6p1GMAIY
  • Heads Up:🇯🇵 Tertiary Industry Index MoM (FEB) due at 04:30 GMT (15min) Previous: -1.7% https://www.dailyfx.com/economic-calendar#2021-04-20
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.20% US 500: 0.14% FTSE 100: -0.02% Germany 30: -0.04% France 40: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JfhA2eyx8v
  • 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: https://t.co/kODPAfJE79 https://t.co/KRWQChtT4q
  • The Dollar took out the 50-day moving average to start the week and we are now slipping through the 100 DMA to start Tuesday trade. Watching $USDJPY, GBPUSD and earnings into Tuesday trade https://www.dailyfx.com/forex/video/daily_news_report/2021/04/20/Dollar-Breaks-USDJPY-and-GBPUSD-Technical-Barriers-Earnings-and-Dogecoin-on-Deck.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/w9Wc3qSMtN
  • Australian Dollar Price Outlook: AUD/USD, AUD/JPY, AUD/NZD, AUD/CHF - https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2021/04/20/Australian-Dollar-Price-Outlook-AUDUSD-AUDJPY-AUDNZD-AUDCHF.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $AUD $AUDNZD $AUDUSD $AUDJPY
  • $AUDUSD, Australian govt. bond yields rising after #RBA minutes They mentioned a 1st step to tapering 'is likely to occur end of June' when TFF is likely to end They also said they may consider extending it amid deterioration in financial system, but signs are currently missing https://t.co/ROgYfwKOub
EUR/JPY Technical Analysis: Down-Trend at ‘Decision Point’

EUR/JPY Technical Analysis: Down-Trend at ‘Decision Point’

James Stanley, Senior Strategist

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

Talking Points:

  • EUR/JPY Technical Strategy: Big-picture down-trend working on higher-lows, very near longer-term base of support.
  • EUR/JPY is up over 100-pips off of last week’s lows and fast approaching prior price action support. Should price action break above this zone + a projected trend-line, top-side strategies could become attractive.
  • 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 the breakdown in EUR/JPY on the heels of a BoJ rate decision that left many market participants wanting for more. While expectations for enhanced stimulus out of Japan were running extremely high going into the most recent BoJ decision, the bank largely underwhelmed and this created a sharp move of Yen strength as stimulus bets priced-out of Japanese markets. But have we heard the last from the Bank of Japan? Probably not, and more likely, other market participants are harboring the expectation for the BoJ to come to the table with something ‘big’ before the end of the year.

None-the-less, price action in EUR/JPY at this point remains bearish as denoted by a recent series of lower-lows and lower-highs that have come-in post-BoJ. We do have the initial makings of what could be a top-side reversal, as prices have moved more than 100 pips off the lows into an interesting area of potential resistance. Just a few pips above current levels is prior price action swing support at 113.88, and just a few pips above that we have a projected trend-line that can be found by connecting the Brexit low at 109.19 to the July swing low at 110.81. Should price action break above this zone of potential resistance, then traders may be able to look at the long-side of the pair under the premise of trading bullish continuation.

Traders looking to get long would likely want to wait for price action to break above this area of potential resistance in order to confirm top-side sustainability before looking to trigger the position. Should price action break above this area around 113.88, top-side targets could seek out an initial level of 115.37, which is the 61.8% Fibonacci retracement of the ‘Abenomics move,’ taking the low in 2012 to the high in 2014. This level had also seen quite a few swings around the erratic price action during the post-Brexit environment; and above that we have a prior price action zone of resistance around 116.80, followed by the psychological level at 117.50 and then the July high at 118.45.

Alternatively, the short-side of the pair could be attractive for short-term momentum strategies until this zone of resistance at 113.88 becomes broken; but traders utilizing longer-term approaches would likely want to tread cautiously around the prospect of bearish continuation while near the well-established zone of support around the 110-big figure.

EUR/JPY Technical Analysis: Down-Trend at ‘Decision Point’

Charts 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