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
  • (Oil Briefing) Crude Oil, Energy Stocks Sink on Fed Commentary. WTI at Risk to Technicals #CrudeOil #WTI #Fed https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/08/05/Crude-Oil-Energy-Stocks-Sink-on-Fed-Commentary-WTI-at-Risk-to-Technicals.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/g24G2cNeIW
  • 🇳🇱 Inflation Rate YoY (JUL) Actual: 1.4% Expected: 1.6% Previous: 2% https://www.dailyfx.com/economic-calendar#2021-08-05
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.96%, while traders in France 40 are at opposite extremes with 78.94%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ckOcIy4HK4
  • The US Dollar could lose some ground against ASEAN currencies such as the Singapore Dollar and Thai Baht amid slowing Emerging Asia Covid case growth. Softer US NFPs may also bode well.Get your market update from @ddubrovskyFX here:https://t.co/jnJ80hQR4P https://t.co/x37yml0Cow
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.18% 🇳🇿NZD: 0.11% 🇨🇦CAD: 0.09% 🇪🇺EUR: -0.01% 🇨🇭CHF: -0.08% 🇯🇵JPY: -0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/as8Ba27Vtx
  • Heads Up:🇳🇱 Inflation Rate YoY (JUL) due at 04:30 GMT (15min) Expected: 1.6% Previous: 2% https://www.dailyfx.com/economic-calendar#2021-08-05
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.18% Wall Street: 0.17% Germany 30: 0.07% FTSE 100: 0.05% France 40: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/o3SdNfYFba
  • Wall Street Futures Update: Dow Jones (+0.17%) S&P 500 (+0.17%) Nasdaq 100 (+0.10%) [delayed] -BBG
  • Heads Up:🇮🇩 GDP Growth Rate YoY (Q2) due at 04:00 GMT (15min) Expected: 6.57% Previous: -0.74% https://www.dailyfx.com/economic-calendar#2021-08-05
  • Heads Up:🇮🇩 GDP Growth Rate QoQ (Q2) due at 04:00 GMT (15min) Expected: 2.94% Previous: -0.96% https://www.dailyfx.com/economic-calendar#2021-08-05
EUR/JPY Technical Analysis: Sticking to the Range

EUR/JPY Technical Analysis: Sticking to the Range

James Stanley, Senior Strategist

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

Talking Points:

  • EUR/JPY Technical Strategy: Longer-term down-trend still intact, near-term range developed over the past three weeks.
  • EUR/JPY is still near longer-term support values after the out-sized move lower post-Brexit.
  • 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 down-trend in EUR/JPY being at a ‘decision point’ after price action had posed a vigorous bounce off of the prior swing-low. As we noted, the fact that this swing-low came-in higher than the prior swing-low highlighted the down-trend in EUR/JPY may be nearing a reversal as sellers were unable to drive the pair lower. Since then, we’ve seen back-and-forth price action as EUR/JPY has built-in to a fairly consistent range through the month of August (shown below).

EUR/JPY Technical Analysis: Sticking to the Range

Charts prepared by James Stanley

Traders can handle such a scenario in one of two ways; either a) trade the range or b) await the break. For those looking to trade an eventual break of this range, the likely culprits will probably come from Central Bank innuendo, primarily speaking of Japan as the European Central Bank appears to be in somewhat of a holding pattern after their recent increases to their already-outsized stimulus efforts.

For those looking to utilize such an approach, they’d likely want to wait for the range to break before assigning any type of a directional bias to EUR/JPY. On the resistance side for prospective bullish plays, the level of 114.09 could be interesting as this is the 38.2% retracement of the Brexit-move in the pair. And this level has seen quite a few price action inflections, as the previous swing low had caught support off of this level, and the recent range is appearing to resist just shy of the same level.

On the bottom-side of price action in the effort of bearish plays, a longer-term Fibonacci level at the 112.00 area, just below the 23.6% retracement of the Brexit-move, could provide that litmus for setting up short- positions.

EUR/JPY Technical Analysis: Sticking to the Range

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