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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here: https://t.co/GGVrB3r7if https://t.co/HPHUC8EG3o
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/q80wSAoxXP
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:https://t.co/ed4QR7QQOn https://t.co/gDWYNtm2UY
EUR/JPY Technical Analysis: Welcome Back, Big Figure (¥120.00)

EUR/JPY Technical Analysis: Welcome Back, Big Figure (¥120.00)

2017-03-22 18:01:00
James Stanley, Strategist
Share:

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

Talking Points:

In our last article, we looked at the potential for bullish continuation prospects in EUR/JPY. After the ECB meeting from the week-prior, the pair had ran-up to set a new short-term high; after which a retracement of that bullish move had set-up a ‘higher-low’ around a key zone of support in the range between 121.65-121.95.

This support did not hold; and since then, we’ve had bears envelop near-term price action in EUR/JPY as the pair has shredded down to a deeper, perhaps more pivotal level of potential support. This level around ¥120.00 is very important to EUR/JPY price action; as just ten pips below we have a key Fibonacci retracement level at 119.90 – which is the 61.8% retracement of the 25-year move in the pair (taking the highest high (2008) and lowest low (the year, 2000) of the past 25 years).

EUR/JPY Technical Analysis: Welcome Back, Big Figure (¥120.00)

Chart prepared by James Stanley

Traders would likely want to avoid chasing the move-lower from here. This near-term burst of weakness could certainly carry continuation potential; but the prospect of selling whilst at a key area of long-term support could be daunting.

For those that do want to sell, they’ll likely want more information before plotting that strategy: Either a continued down-side run that could open the door for utilizing ¥120.00 as ‘lower-high’ resistance; or perhaps letting price action run up to a shorter-term swing point such as ¥120.82. Either of these methods could make for a more attractive way of looking for continuation rather than just chasing the move-lower.

On the bullish side, traders would likely want to see some element of support before looking to get long. If we can get some evidence of such, the prospect of a reversal setup could become considerably more attractive. But – if no support around ¥120.00 – no reversal. Catching falling knives can be a perilous task.

EUR/JPY Technical Analysis: Welcome Back, Big Figure (¥120.00)

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