Skip to Content
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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
EUR/JPY Technical Analysis: Break Down to a Big Level

EUR/JPY Technical Analysis: Break Down to a Big Level

James Stanley,

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

Talking Points:

In our last article, we looked at resistance showing in EUR/JPY at an area that was previously support around the 121-handle. And given that this happened shortly after a test below the 120-psychological level, the potential for a continuation of ‘lower lows’ and ‘lower highs’ brought along the prospect of range-like price action in the pair to finally yield.

After the open of trading this week, EUR/JPY continued to sell-off after reacting to last week’s resistance; and bearish momentum appeared to continue to gain speed as we tested deeper support levels at 120.14, 119.91 and then 119.30. This was likely driven, at least in part, by a dose of political risk around French elections. But as risk aversion around French elections appeared to soften this morning, support came in on EUR/JPY around an extremely interesting level; highlighting how the prior bullish trend that started after the U.S. Presidential election is holding on by a thread.

After this morning’s support test, buyers came-in fairly quickly around the announcement that French Presidential candidate Francois Bayrou was dropping out of the race in order to further support an alliance with Emmanuel Macron. This seemingly decreased the odds of a Marine Le Pen victory, which has largely been considered a Euro-negative. So this is still very much a fluid, developing situation; similar to Brexit or the U.S. Presidential Election in that matters are due to change very quickly.

From a price action perspective – those looking to trade further Euro breakdown could seek out a short-term setup utilizing the prior batch of resistance, around 120.40 for risk placement, targeting that same prior low around 118.60.

For those investigating bullish stances, they’d likely want to see prices breaking above that batch of resistance at 120.40 to prove that buyers may be able to take control of the situation; after which a support test in the zone from 119.91-120.14 could offer the top-side trigger.

--- Written by James Stanley, Analyst for

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.