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
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
More View more
EUR/JPY Technical Analysis: The Bullish Range is at Support

EUR/JPY Technical Analysis: The Bullish Range is at Support

James Stanley, Senior Strategist

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

Talking Points:

In our last article, we looked at the continued up-trend in EUR/JPY after another dovish move from the ECB produced a mere blip in the ‘bigger picture’ bullish trend. Deductively, this is an extremely bullish signal as even a dovish Central Bank-move was unable to turn the trend; so as the Yen has been going through its own bout of retracement after a massive bout of weakness, EUR/JPY has remained relatively well-supported. This has produced a range-bound formation near the top of the ‘bigger picture’ up-trend, and this can be constructive for traders looking to add on short-Yen exposure or looking to offset short Euro-risk from other setups.

EUR/JPY Technical Analysis: The Bullish Range is at Support

Chart prepared by James Stanley

Given the veracity of the bullish move leading into this range, traders would likely want to proceed-forward with a trend-side bias; looking to buy around support and using resistance to scale-out of the position or manage-off bullish risk rather than looking to open fresh shorts.

Traders can look to the post-ECB swing-low in the pair at 120.87 to set risk, with potential resistance areas at 123.00 and 124.09, respectively. Given how quickly sellers have responded to resistance previously at 124.09, traders would likely want to set limits inside of this level, around 123.80-123.90 in the event that a recurrent test is unable to match that prior-high.

EUR/JPY Technical Analysis: The Bullish Range is at 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