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
Mixed
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Equities continue to struggle as bond yields focus on Central Bank policy actions. DAX 30 finds support in the long-term ascending trendline. Get your #DAX market update from @HathornSabin here:https://t.co/ydhxFrQ60j https://t.co/MFvOGWkLi9
  • $GBPUSD is consolidating around the 1.3800 - 1.3850 level today, around a nearly one-month low. The pair hit a fresh multi-year high in late February before falling lower amidst a resurgence in USD strength as yields continue higher. $GBP $USD https://t.co/i6g0gEq6jA
  • US 10yr Treasury Yields are consolidating right around the 1.60% level today, trading around their highs of the pandemic. $USD https://t.co/9FrulBqqsC
  • #Gold, #Silver, #Dollar, $AUDUSD, $USDCAD and #Bitcoin Technical Levels - Webinar Archive - https://t.co/dkI9RkpZ4w
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.08% 🇬🇧GBP: -0.18% 🇦🇺AUD: -0.19% 🇯🇵JPY: -0.41% 🇪🇺EUR: -0.42% 🇳🇿NZD: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/768NGH3tot
  • #Gold just hit a fresh multi-month low as the precious metal dropped to trade around the $1,680 level. The metal broke through support alongside the rise in yields in February, falling from around $1,800 to its current lows. $XAU $GLD https://t.co/oJvQqE5gfR
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Germany 30: 3.35% France 40: 2.17% FTSE 100: 1.38% Wall Street: 1.31% US 500: 0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/fLfJGdE5Hl
  • Hey traders! Get your Monday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/QO6zl1auQk
  • Really great article - apposite on International Women's Day but also a great read on the other 364 days of the year. @DailyFX h/t Weld Royal and Izaac Brook https://www.dailyfx.com/forex/fundamental/article/special_report/2021/03/08/Three-Women-Leaders-Changing-Finance-Economics-and-Business.html
  • $USDCHF has risen to fresh seven month highs today as the pair continues to trade above the 0.9300 level, at its highest levels since July of 2020. $USD $CHF https://t.co/spI5eIP3NM
EUR/JPY Technical Analysis: Blast-Off to Fresh 2017 Highs

EUR/JPY Technical Analysis: Blast-Off to Fresh 2017 Highs

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 a bullish setup in EUR/JPY after price action broke-above a bear flag formation that had built over the prior month. But even while that bear flag was showing a retracement of the ‘bigger picture’ bullish trend, buyers remained vigilant; not allowing prices to drop below the 38.2% Fibonacci retracement of the most recent major move.

4-Hour EUR/JPY with emphasis on yesterday’s Bullish Breakout

EUR/JPY Technical Analysis: Blast-Off to Fresh 2017 Highs

Chart prepared by James Stanley

Yesterday saw Mario Draghi offer comments regarding the ECB’s forward-looking outlook, and markets responded with an outsized gust of strength in the Euro; driving EUR/JPY up to a fresh yearly high of ¥127.86. Earlier this morning, reports began to circulate that ECB ‘sources’ indicated that Mr. Draghi’s speech yesterday was ‘misjudged’ to mean that the bank is getting closer to tightening policy when the intent was to be more balanced in nature. But regardless of the noise, the market reaction was telling as prices in EUR/JPY posed a quick dip after these comments began to circulate through the market, at which point buyers soundly pounced on the move to re-drive EUR/JPY right-back towards those prior highs.

The point where the bounce began is an area of interest, as this syncs with the April 2016 high in EUR/JPY. On the chart below, we’re looking at the April swing-high that helped to set intra-day support after this morning’s dip in EUR/JPY:

EUR/JPY Daily Chart with emphasis on April 2016 swing-high

EUR/JPY Technical Analysis: Blast-Off to Fresh 2017 Highs

Chart prepared by James Stanley

After this morning’s support test, buyers have quickly driven the pair back towards prior highs, and this highlights the potential for bullish continuation in the pair. The challenge at this point is one of entry, as prices remain rather elevated from nearby support levels after this recent run-higher, and a bit of resistance has begun to show on the hourly chart around the ¥127.86 swing-high.

On the chart below, we look at four different potential support levels above the prior swing-low of ¥124.71; and each of these could be usable for bullish re-entry. Key would be letting support actually show before triggering long. Alternatively, the possibility of bullish breakout entry logic is available, using this morning’s high of ¥127.86, with targets set towards resistance at ¥128.52.

EUR/JPY 30M Chart with Potential Support Levels Applied

EUR/JPY Technical Analysis: Blast-Off to Fresh 2017 Highs

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