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.

Free Trading Guides
EUR/USD
Bullish
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
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
Bitcoin
Mixed
More View more
Real Time News
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/85JHunf2Xf
  • Many traders ask how a trading method that is 77 years old is applicable today. Learn about the Gartley pattern and see how you can incorporate it into your trading style here: https://t.co/2yPmGH0XvT https://t.co/rtqUKZSdn1
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/ywv7RVP9qY
EUR/JPY Price Forecast: Bullish Sentiment Grows After Breaking 123.10

EUR/JPY Price Forecast: Bullish Sentiment Grows After Breaking 123.10

2019-05-22 13:00:00
Mahmoud Alkudsi, Market Analyst
Share:

EUR/JPY Price Outlook

  • EUR looking ahead to important data releases tomorrow, including Q1 German GDP.
  • EUR/JPY A break above 123.07 likely to test 124.20.

Download the Q2 EUR and JPY forecasts and find out what is likely move the price through mid-year!

Learn more about EUR and JPY data releases for this week from the DailyFX Economic Calendar

Just getting started? See our Beginners’ Guide for FX traders

EUR/JPY CORRECTION AFTER A DOWNTREND

On May 6 a bearish momentum was confirmed on EUR/JPY with a downside breakaway gap. On May 13 the price opened with another gap to the downside showing more weakness and pointing lower towards 122.08, its lowest price in more than 4 months. EUR/JPY pulled back in the same day and closed with a long legged Doji pattern, reflecting hesitation from the sellers and indicating a potential change of direction.

Read More: Trading above and below 123.05- levels to watch

EUR/JPY closed with 3 Doji patterns in the following trading days, emphasizing a weakness in this bearish momentum and paving the way for the price to correct higher. Yesterday, the price rallied and printed 123.75, breaking above the May 10 high at 123.61 and ending the downtrend momentum.

EUR/JPY DAILY PRICE CHART (NOV 2018 - MAY 22, 2019)

EUR/JPY Price Daily Chart 22-05-19

A closer look at the EUR/JPY daily chart shows the price breaking above the downtrend line originated from April 17 high at 126.81 and closing above 123.10 moving to the higher trading range (123.10 -124.20). This bullish development could entice the pair to rally towards the high end of mentioned range. However, a series of daily and weekly resistances at 123.64, 123.88 and 124.09 must be cleared first. Any close above 124.20 would likely move the pair to a higher trading range and pave the way to a rally towards 124.90, contingent on clearing the weekly resistance at 124.54.

Today the pair probed lower and found support at the low end of the trading range mentioned above. EUR/JPY may edge lower if the price closes below the zone 123.10 -123.05 hinting at a move towards 122.50. Supports levels at 122.92 (daily support at the downtrend line mentioned above) and 122.61 need to be kept in focus.

Having trouble with your trading strategy? Here’s the #1 mistake that traders make

EUR/JPY 2 HOURS PRICE CHART (MAY 22, 2019)

EUR/JPY Price 2H Chart 22-05-19

Looking into EUR/JPY 2-hour chart, we notice the price printed a high today of 123.51. Any break above this threshold could start a bullish sentiment towards yesterday’s high located at 123.75. However, the daily resistance mentioned above at 123.63 needs to be watched.

EUR/JPY could rally towards 123.75 and fall after to form a double top pattern where the neck line resides at 123.06. If the pair breaks and remains below the neck line this suggests EUR/JPY would likely point lower towards 122.40. Support levels at 122.92, 122.78 and the zone (the low of May 21 at 122.67 - Daily support at 122.62). The end of the trading range at 122.50 is also worth monitoring.

The above scenario may still be valid even if the price does not form a second top. In this case a break below 123.05 would start a bearish momentum hinting towards 122.50. Support levels and zones mentioned above need to be monitored closely.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.