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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Democratic Senator Manchin open to President Biden's "human infrastructure" and undoing some GOP tax cuts - NBC
  • pretty sure I made a Time Variance Authority reference when critiquing strong form market efficiency earlier today in the @Nadex boot camp needless to say I’m hyped for #Loki episode 3 tonight
  • Bank of Japan member says need to enhance easing during the expected recovery - BBG
  • Bank of Japan member says vaccination delays will mean slower growth - BBG
  • Heads up traders! Will be covering the #Euro in the aftermath of last week's #Fed and incoming US PCE data and the BoE later this week, looking at retail trader positioning $EURUSD $EURGBP Starting the session in about 10min, signup below! https://t.co/N2qpEMbpBv
  • Please join @ddubrovskyFX at 20:00 EST/00:00 GMT for a webinar on what other traders' buy/sell bets say about price trends. Register here: https://t.co/AzOQip9B3r https://t.co/Bp8J3szHKq
  • Heads Up:🇯🇵 BoJ Monetary Policy Meeting Minutes due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-06-22
  • The US Dollar may gain versus ASEAN currencies like the Singapore Dollar, Thai Baht and Philippine Peso after the Fed projected 2 rate hikes by the end of 2023. All eyes on US PCE data. Get your market update from @ddubrovskyFX here:https://t.co/LaLVW8FFHI https://t.co/W7AHAcuZbO
  • 5 out of 9 Dow Jones sectors ended higher, with 43.3% of the index’s constituents closing in the green. Consumer discretionary (+1.27%) and materials (+0.62%) outperformed, whereas industrials (-0.25%) and communication services (-0.21%) trailed behind. https://t.co/iBLgt4PcYc
  • 🇦🇺 Markit Manufacturing PMI Flash (JUN) Actual: 58.4 Previous: 60.4 https://www.dailyfx.com/economic-calendar#2021-06-22
EUR/JPY Technical Analysis: Another Test of Confluent Support

EUR/JPY Technical Analysis: Another Test of Confluent Support

James Stanley, Senior Strategist

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

Talking Points:

  • EUR/JPY Technical Strategy: Long-term down-trend; near-term range-bound.
  • EUR/JPY saw a minimal movement off of support after our last article, only to return back to the same zone.
  • If you’re looking for trading ideas, check out our Trading Guides.

In our last article, we looked at EUR/JPY after the pair ran down to support after the September BoJ meeting. And as we wrote, this confluent zone of support had already seen multiple tests in the months leading up to that meeting, raising the possibility of a bigger-picture or longer-term reversal after the pair spent the better part of the previous 13-months in a vigorous downward-sloping channel (shown below).

EUR/JPY Technical Analysis: Another Test of Confluent Support

Chart prepared by James Stanley

It’s the price action after the Brexit referendum that should be really compelling to EUR/JPY traders. Drawing a Fibonacci retracement on the Brexit range (high/low of June 24th) brings on a series of levels that have seen a considerable number of support/resistance inflections. Of relevance to near-term price action is the 23.6% retracement of that move at 112.25, which is confluent with another, longer-term Fibonacci level at 112.02, which is the 23.6% retracement of the ‘Financial Collapse move’ in EUR/JPY, taking the 2008 high to the 2012 low. But perhaps more relevant is the fact that this support has held the lows in EUR/JPY since mid-July after numerous tests of this zone.

As we looked at in our last article, this continued support can open the door to top-side plays. The targets in our last article were at 114.30, and traders can also incorporate the potential resistance zone at 115.00-115.37. Should rising prices take out the 115.37 level of resistance, the legitimate possibility exists of an extension of the move towards deeper resistance at 117.50, 119 and then 119.90, just shy of the next ‘big’ psychological level at 120.00.

EUR/JPY Technical Analysis: Another Test of Confluent Support

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