Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
EUR/JPY Price Forecast: EUR vs JPY Tests Well-Defined Technical Levels

EUR/JPY Price Forecast: EUR vs JPY Tests Well-Defined Technical Levels

Mahmoud Alkudsi, Analyst

Share:

What's on this page

EUR vs JPY Technical Outlook

  • EUR/JPY trades in a sideways move
  • EUR vs JPY price chart reveals bullish signals

EUR/JPY Price- Interrupted Rally

On Wednesday, EUR/JPY rallied to a two-week high at 121.48 and retreated after as some bulls seemed to cut back. Nevertheless, the weekly candlestick closed in the green with a 0.5% gain.

The Japanese Yen fell due to the risk-on sentiment driven by the central bank's stimulus around the globe combined with the recent positive economic data yet, the prospect of a second wave of coronavirus kept demand on safe-haven currencies intact.

EUR/JPY Daily PRice CHART (Sep 1, 2018 – JuLY 6, 2020) Zoomed Out

EURJPY daily price chart 06-07-20 zoomed out
JPY Forecast
JPY Forecast
Recommended by Mahmoud Alkudsi
Download our fresh Q3 JPY Forecast
Get My Guide

EUR/JPY Daily Price CHART (March 2 – JuLY 6, 2020) Zoomed in

EURJPY daily price chart 06-07-20 zoomed in

In mid-June, EUR/JPY corrected its upward trend and started a sideways move creating lower highs with higher lows. Last week, the price failed on multiple occasions to rally to the higher trading zone reflecting the bull’s hesitation at this point.

With that said, any successful close above the high end of the current trading zone 119.63 -121.48 signals that bulls could steer EURJPY towards 124.10. A further close above that level may encourage bulls to extend the rally towards 127.55.

On the flip side, a close below the high end of the zone would mean more of the sideways move ie, it may cause a fall towards the low end of it. A further close below that level could embolden bears to press towards 116.89.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

EUR/JPY Four Hour Price CHART (May 22– JuLY 6, 2020)

EURJPY four hour price chart 06-07-2020

Last week, EUR/JPY rallied above the lower line on the downtrend lines fan originated from the June 16 high at 122.11 and generated a bullish signal. Today, the price has broken above the higher line on the same fan and generated another bullish signal. Nonetheless, any break below the uptrend line originated from the May 22 low would generate a bearish signal.

To conclude, a break above 122.48 may trigger a rally towards the 123.40, while a break below 120.75 could send EURJPY towards 119.90. Yet, the daily support and resistance levels underlined on the four-hour chart should be considered.

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