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
Bearish
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
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.73%, while traders in NZD/USD are at opposite extremes with 74.62%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Ej2mcEGBUh
  • BoC Deputy Governor Wilkins: Real estate bounce back has been 'sharp, 'aggressive' Pent-up demand drove sharp housing rebound Doesn't see a lot of speculation in housing - BBG $CAD
  • BoC Governor Macklem: Negative rates in toolkit; not being discussed Could lower effective lower bound, not be negative Ample scope to scale up QE if needed - BBG $CAD
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: US 500: 0.00% Wall Street: -0.00% France 40: -0.20% Germany 30: -0.21% FTSE 100: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/QXuQhXMBLp
  • I’ve outsmarted the onions! Happy thanksgiving everyone 🦃 https://t.co/RjTjo5nawW
  • Contrary to standard belief, greed and profits are often inversely correlated in trading. Remaining disciplined is key to a successful trading strategy. Learn how to control greed when trading here: https://t.co/5GXReUsKRj https://t.co/S2DZkNw7Tc
  • BoC Governor Macklem: Risk around our projection "roughly balanced" Inflation projected to remain less than 2% into 2023 - BBG $CAD
  • BoC Governor Macklem: BoC expects economy to shrink 5.5% in 2020 Economy to be operating below potential into 2023 Inflation is unusually weak - BBG $CAD
  • BoC Governor Macklem: Rates will stay very low for very long time Very rapid growth of the reopening phase is now over Annual growth to average almost 4% in 2021, 2022 - BBG $CAD
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Gold: 0.12% Silver: -0.06% Oil - US Crude: -1.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ccissyaJkX
EUR/JPY: Lower-Lows, Highs After Another Support Bounce

EUR/JPY: Lower-Lows, Highs After Another Support Bounce

2018-02-14 19:17:00
James Stanley, Strategist
Share:

Talking Points:

- EUR/JPY put in another test of the longer-term zone of support this morning, after which a rally has driven prices up to find a bit of resistance off of the January swing-low.

- While longer-term support remains, the rate with which this bearish drive has come into EUR/JPY is notable, and traders should look to adjust as a bigger move may be on the horizon.

- If you’re looking to improve your trading approach, check out our Traits of Successful Traders research. And if you’d like more of a basic primer for the FX market, check out our New to FX Guide.

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

EUR/JPY Bounce From Longer-Term Support Finds Lower-Highs

Last week saw the illustrious trend in EUR/JPY finally began to tip-lower. Prices gave up a month of gains last week, and price action ended the week on an interesting note after bouncing from a key zone of longer-term support. This zone, which comprises the area that runs from 131.41-132.05 had helped to hold the lows in the pair throughout Q4, and this started to come into play again last week after a rather strong bounce carried into the early portion of this week.

EUR/JPY Hourly: Friday’s Support Bounce (in Blue) Followed by Lower-Lows, Highs

eurjpy hourly chart

Chart prepared by James Stanley

The rate with which this weakness has come into EUR/JPY is notable. While the longer-term support zone still remains, the momentum of this bearish drive has been significant, and this support zone may not hold for long as bearish tests have been driving deeper into this area and bears have shown no signs of yet giving up.

EUR/JPY Eight-Hour Chart: Aggressive Sell-Off Past Two Weeks

eurjpy eight hour chart

Chart prepared by James Stanley

Moving Forward

To put into context what we have above: A longer-term trend has been aggressively retracing; and this puts forth two possibilities for traders as we move forward on EUR/JPY. Either a) look for a reversal of short-term momentum into the direction of the longer-term bullish trend or b) look for a continuation of momentum that may eventually take-out that longer-term zone of support.

For the bullish approach: traders would likely want to allow for the pain chain that’s shown on shorter-term charts to first be broken to get an idea that bulls may be returning on a longer-term basis, allowing for a bit more confirmation after this morning’s rip-higher. A break above 133.79 would make the prospect of bullish continuation look considerably more attractive, as we’d then have shorter-term higher-highs to go along with the bullish break of the bearish trend-line.

For the bearish approach, traders can look to near-term resistance levels for entry and stop placement. We’re seeing some element of selling coming-in around the January swing-low of 133.01, and a bit higher we have two additional lower-highs to work with at 133.36 and 133.79, respectively.

eurjpy hourly chart with resistance applied

Chart prepared by James Stanley

To read more:

Are you looking for longer-term analysis on the Euro or Japanese Yen? Our DailyFX Forecasts for Q1 have a section for both EUR/USD and USD/JPY. We also offer a plethora of resources on our EUR/JPY page, and traders can stay up with near-term positioning via our IG Client Sentiment Indicator.

--- 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