EUR/JPY, USD/JPY Price: Trading Lower - Potential Reversal Points and Levels
EUR and USD Price Forecast
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The Bearish Move Continues
Last week EUR/JPY declined to 117.68 - its lowest level in 28 months. However, before the end of the weekly session the pair recovered roughly all of the losses, then closed on Friday nearby the weekly opening price with a Doji pattern. In turn, USD/JPY tested its lowest levels in seven months at 105.27. The pair closed on Friday the weekly candlestick losing 0.8% of its value.
Today, Euro and US Dollar continued softening against Japanese yen, printing lower prices and heading to test the levels discussed in our latest update: Weak US Dollar and Weaker Euro against Yen
Alongside this, the Relative Strength Index (RSI) dipped below 30 on EUR/JPY and remained in oversold territory emphasizing the strength of the bearish momentum. On the other hand, the oscillator remained last week above 30 on USD/JPY however, today (RSI) dipped to the oversold territory reflecting the seller’s still in charge.
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EUR/JPY DAILY PRICE CHART (DEC 1, 2016 - AUG 12, 2019) Zoomed Out
EUR/JPY DAILY PRICE CHART (July 11 - AUG 12, 2019) Zoomed in
Looking at the daily chart we notice on Tuesday EUR/JPY rebounded from the high end of the trading zone 117.30 – 119.78 and currently eyes the low end of this zone.
Thus, a close below the low end of this zone could see the price trading towards 114.80. Although, the weekly support levels underlined on the chart (zoomed in) need to be considered. Further close below 114.80 may cause another leg lower towards the vicinity 112.19-08. However, the weekly support levels marked on the chart should be kept in focus.
In turn, any failure in closing below the low end of this zone, could push the price towards the high end. The daily and weekly resistance levels mentioned on the chart would be worth monitoring. See the chart to know more about the higher trading zone with the weekly resistance levels buyers would encounter in a further bullish move.
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USD/JPY Daily CHART (JAN 18, 2018– AUG 12, 2019) Zoomed Out
USD/JPY Daily CHART (MAy 8 – AUG 12, 2019) Zoomed In
Looking at the daily chart we notice on Friday USD/JPY tested the lower trading zone 104.77 – 105.50 however, failed in closing in it. Today, the pair tests the exact same trading zone. Hence, a close below the high end may send the price towards the low end of the zone. Further close below the low end could press the price towards 103.76. Although, the weekly support levels underlined on the chart (zoomed in) need to be watched closely.
On the flip-side, a close above the high end of the zone, could push the price towards 107.30. Nonetheless, the daily and weekly resistance levels underscored on the chart should be monitored along the way.
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.