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
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
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/nD75SqMrxd
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.66%, while traders in France 40 are at opposite extremes with 79.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/0X721EyXki
  • Gold Prices at 3-Month High Amid USD Weakness after Big NFP Miss https://www.dailyfx.com/forex/market_alert/2021/05/10/Gold-Prices-at-3-Month-High-amid-USD-Weakness-after-Big-NFP-Miss.html https://t.co/ZlsBKlFOw6
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.23% 🇦🇺AUD: 0.02% 🇨🇦CAD: -0.02% 🇨🇭CHF: -0.08% 🇳🇿NZD: -0.09% 🇯🇵JPY: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/pzMXnTquKf
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.36% FTSE 100: 0.33% Germany 30: 0.28% Wall Street: 0.27% US 500: 0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/d3nVIzPniI
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/ApsjkNfGMO
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.63% Silver: 0.61% Gold: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nO754swCBo
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.30% 🇦🇺AUD: 0.07% 🇨🇦CAD: 0.00% 🇪🇺EUR: -0.05% 🇨🇭CHF: -0.09% 🇯🇵JPY: -0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rdSUCcdssH
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.56%, while traders in France 40 are at opposite extremes with 80.47%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/85hvnrXx2Y
  • 🇦🇺 Retail Sales MoM Final (MAR) Actual: 1.3% Previous: -0.8% https://www.dailyfx.com/economic-calendar#2021-05-10
EUR/JPY Technical Analysis: Threatening a Bullish Break of Bear Pennant

EUR/JPY Technical Analysis: Threatening a Bullish Break of Bear Pennant

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 an aggressive bullish reversal in EUR/JPY as price action ran into a key zone of potential resistance around ¥117.50. Going along with this strong move-higher was price action breaking above a down-ward sloping trend-line that had held resistance in EUR/JPY for over a month.

The primary initiator of the move were French elections over the weekend; as this weekend’s election results ushered-in a return of risk tolerance. And with this return of risk tolerance came another bump-higher in equities, a bump-lower in Gold prices, and another leg of weakness for the Japanese Yen.

The bullish move in EUR/JPY extended on Tuesday to cross-above the pivotal ¥120.00 level; but another level/zone of resistance is showing that may bring pause to the continuation of the bullish move. The level at ¥121.95 is the 50% Fibonacci retracement of the ‘Abe-nomics’ move in EUR/JPY, taking the low from 2012 up to the high in 2014. But very near this level is another key element of resistance, as a down-ward sloping trend-line that’s held the highs in EUR/JPY since mid-December of last year is projected just-above this area.

EUR/JPY Technical Analysis: Threatening a Bullish Break of Bear Pennant

Chart prepared by James Stanley

With Central Bank meetings from both Europe and Japan scheduled to take place in the next 24 hours, EUR/JPY can remain volatile in the near-term. This would be an idea time frame for a ‘new phase’ of price action to take place, whether that be breaking above the longer-term ‘pennant formation’ in the pair; or resistance at current levels and continuing to dig deeper within the congestion pattern showing on longer-term charts.

EUR/JPY Technical Analysis: Threatening a Bullish Break of Bear Pennant

Chart prepared by James Stanley

For those that do want to play for the top-side break of the bear pennant formation, there are a couple of different ways of doing so. Traders can look for a top-side break of the pennant (which may happen around tomorrow’s Central Bank meetings) to show further continuation potential; after which this current zone of resistance around ¥121.95 could be re-assigned as support. This would allow for the resolution of a key resistance zone to further confirm the potential for a sustained bullish-move.

Alternatively, traders can watch for inside price action to develop ‘higher-low’ support around that ¥120.00-handle. This is a confluent zone for EUR/JPY as just below the psychological level of 120 we have the 61.8% retracement of the ‘big picture’ move in EUR/JPY, taking the low from the year 2000 up to the high set in 2008.

EUR/JPY Technical Analysis: Threatening a Bullish Break of Bear Pennant

Chart prepared by James Stanley

--- Written by James Stanley, Strategist 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