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.

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
GBP/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
More View more
Real Time News
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/FFMy5O9YoY
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • 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: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
EUR/JPY Chart Exposes Bearish Signals- Euro vs Japanese Yen Forecast

EUR/JPY Chart Exposes Bearish Signals- Euro vs Japanese Yen Forecast

Mahmoud Alkudsi, Analyst

Euro vs Japanese Yen Technical Analysis

  • The pair broke below a major support to a multi-year low
  • Key levels and trading zones to keep track of

Bears in Control

On Friday, EUR/JPY tumbled to over three year low at 115.54 then rallied after as some bears seemed to cover. Yet, the weekly candlestick closed in the red with a 0.5% loss.

Alongside that, the Relative Strength Index (RSI) fell from 40 to 33 reflecting the bearish outlook of the market.

EUR/JPY Daily PRice CHART (JULY 1, 2018 – April 28, 2020) Zoomed Out

EURJPY daily price chart 28-04-20 zoomed out

EUR/JPY Daily Price CHART (Jan 9 – April 28, 2020) Zoomed in

EURJPY daily price chart 28-04-20 zoomed in

Looking at the daily chart, I notice that on Thursday EUR/JPY declined to the current trading zone 113.22- 116.45 reflecting a stronger bearish sentiment. Additionally, the price broke and remained below the lower line of the descending triangle pattern generating another bearish signal.

Hence, bears might press towards the low end of the aforementioned zone. A further close below that level might encourage them to lead EURJPY even lower towards 11.14. That said, the weekly support levels underlined on the chart should be monitored.

On the other hand, any close above the high end of the zone negates the triangle pattern and reflects bears hesitation at this point. This may cause a rally towards 118.46. A further close below that level could extend the rally towards 119.63. Yet, the daily and weekly resistance levels marked on the chart should be kept in focus.

EUR/JPY Four Hour Price CHART (Jan 9 – April 28, 2020)

EURJPY four hour price chart 28-04-2020

From the four hour chart, I noticed that on April 10 EUR/JPY broke below the uptrend line originated from the April 3 low at 116.73 then started a downtrend creating lower highs with lower lows.

A break below 115.49 could resume bearish price action towards 114.94. Although, the weekly support level marked on the chart should be monitored. In turn, any break in the other direction i.e. above 117.07 could send EURJPY towards 118.20. Nevertheless, the daily resistance level printed on the chart should be watched closely.

Written By: Mahmoud Alkudsi, Market Analyst

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