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
Bullish
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
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in AUD/JPY are at opposite extremes with 67.26%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9OZ88CUGm1
  • BHP Billiton Q2 copper output 428,100 tons vs Est. 385,000 tons
  • PM Conte survives confidence vote with 154 votes in favour, however, this is short of the absolute majority of 161 votes needed While little reaction in Euro, BTPs will give a signal of sentiment regarding Italian politics at tomorrow's open https://t.co/3CRMwH1GUu
  • The Canadian Dollar has struggled to recapture bullish momentum as FX markets continue to rebalance US Dollar positioning. Get your $USDCAD marketing update from @CVecchioFX here:https://t.co/gyUcAYZRSC https://t.co/DZVFybVVJd
  • 🇺🇸 Overall Net Capital Flows (NOV) Actual: $214.1B Previous: $-11.1B https://www.dailyfx.com/economic-calendar#2021-01-19
  • I do agree their weak EPS might be a knock on their ability to capitalize on the current situation. I suspect many investors will look right past that to highlight the change in net subscribers added which smashed expectations https://t.co/S9fzVqMn4g
  • $NFLX shares jump 8% following corporate earnings https://t.co/j4Kp12jd4P
  • Though Netflix was starting to slip as one of the principal FAANG members, its perceived ability to prosper during the Pandemic shutdown leveraged greater appeal in recent months. This doesn't seem to carry the 'anti-Covid profit' narrative https://t.co/OM1yQKHwq3
  • $NFLX Streaming Paid Net Change 8.51M vs Est. 6.06M $NFLX Sees Q1 EPS 2.97 vs Est. 2.12
  • $NFLX Q4 Earnings - EPS 1.19 vs Est. 1.38 - Revenue 6.64B vs Est. 6.63B
EUR/JPY Technical Analysis: 'Decision Level' is Now Support for Re-Entry

EUR/JPY Technical Analysis: 'Decision Level' is Now Support for Re-Entry

James Stanley, Strategist

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

Talking Points:

  • EUR/JPY Technical Strategy: Bullish after breakout above the 120-level.
  • EUR/JPY has caught an aggressive bid, and is fast-moving towards the ‘Brexit swing-high’ at 122.00.
  • If you’re looking for trading ideas, check out our Trading Guides.

In our last article, we focused on has historically been a ‘big’ support or resistance level in EUR/JPY with 120.00. This level is, of course, a psychological level so it’ll have a tendency to produce swings and support/resistnace inflections. But this is also very-near the 61.8% Fibonacci retracement of the 16-year move in the pair, taking the low from October, 2000 to the highs of 2008.

Below, we look at the montly chart of EUR/JPY with this Fibonacci retracement applied; and notice how the 61.8% retracement at 119.91 caught the swing low in February/March of 2010, the swing-high of April/May 2011, and again with support in February, March and April of 2013 (each identified on the below chart).

EUR/JPY Technical Analysis: 'Decision Level' is Now Support for Re-Entry

Chart prepared by James Stanley

With price action just 100-pips away from that zone last week, we warned that resistance would likely show here, at least to some degree. And it did, albeit briefly, as this level had helped to set the high to close last week, and then again came-in as the high yesterday. But the bulls couldn’t be corralled for long: After resistance at 120.00 showed up, buyers came-in at prior support around the 118.50-level and have driven prices to fresh new highs with only a brief pause when re-approaching resistance at 120.00.

This opens the door to bullish continuation in EUR/JPY. Traders would likely want to take note of another major resistance level at 122.00, as this was the ‘Brexit swing-high,’ and is also the 50% Fibonacci retracement of the ‘Abe-momics’ move in EUR/JPY, taking the low from the year 2012 up to the high in 2014. This level was also support for three months ahead of the Brexit referendum, so this is a well-traveled level.

But this can be advantageous, as traders would likely want to wait for some element of resistance to soften prices in order to allow for top-side re-entries. With a level as critical as what 120.00 has historically been, this can be an ideal area to look for ‘higher-low’ support to develop now that we have the prospect of bullish continuation.

EUR/JPY Technical Analysis: 'Decision Level' is Now Support for Re-Entry

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