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
Wall Street
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
More View more
Real Time News
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today:
  • Scoping out next week for trading the market, there are a range of high profile influences including September PMIs, Evergrande and a range of central bank decisions. Top listing on my docket is the #FOMC with my scenarios below. Full analysis:
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here:
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here:
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here:
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here:
  • 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:
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here:
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here:
EUR/JPY: Lower-Highs as Prices Post Deeper Tests of LT Support

EUR/JPY: Lower-Highs as Prices Post Deeper Tests of LT Support

James Stanley, Senior Strategist

Talking Points:

- EUR/JPY continues to test a longer-term support zone that’s held the lows in the pair since last September.

- Bulls have been getting increasingly more bashful after each of those support tests, helping to produce a series of near-term lower-highs that go along with those deeper tests of support.

- 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

Longer-Term Support Still Holding, For Now

It was just last Friday that we looked at what was an aggressively bearish move down to a long-term area of support in EUR/JPY. This zone of support came into play in September of last year and has largely held the lows in the pair ever since. But after Friday’s test, price action continued-lower this week to see yet another test within this zone on Wednesday; and after a reaction produced yet another lower-high, we’re tilting back into this area again on Friday.

EUR/JPY Daily Chart: Deeper Test Within Longer-Term Support Zone

eurjpy daily chart

Chart prepared by James Stanley

Given the fact that this support zone has largely held up to this point - that should be a positive. But it’s what has happened after that support came into play that begins complicating the bullish approach, and that’s the fact that we’ve seen a series of lower-highs build in the pair as these support tests continue to get a bit deeper. On the hourly chart below, we can see sellers getting a bit more aggressive, unwilling to wait for stronger moves before taking on bearish exposure.

EUR/JPY Hourly Chart: Lower-Highs Accompany Deeper Tests of Longer-Term Support

eurjpy hourly chart

Chart prepared by James Stanley

Moving Forward

On Wednesday, we looked at the possibility of bearish plays using prior areas of resistance for short-term entries. Given that we’re currently looking at a Friday ahead of a holiday-weekend in the United States, traders would likely want to be a bit more prudent with short-term strategies, particularly in markets that appear to be undergoing some state of change.

We’re looking at two potential areas of lower-high resistance on the below chart, each of which can work with targets cast down to the current zone of longer-term support. If we do see a bearish break of this longer-term support zone before either of these resistance levels come into play, the pair can be revisited in the early-portion of next week to incorporate that new-found bearish momentum. But, until that area breaks, traders should remain on-guard as EUR/JPY carries the potential for a face-ripping rally, and stops should be set accordingly.

EUR/JPY Hourly Chart with Potential Areas of Short-Term Resistance

eurjpy hourly chart

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

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.