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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Italian PM Conte convenes cabinet for Tuesday to inform ministers he is resigning - Cabinet office $EUR Confirming earlier reports
  • Gains on $WTI Crude have stalled out this month below $54.00. The commodity is currently trading around $52.30 after falling to a two-week low late last week. $OIL $USO https://t.co/8Rq7RCrXZB
  • No notable reaction in BTPs given that resignation from Conte has been touted earlier in order to put together a new government. Also, a resignation does not necessarily mean that a snap election will be the next step as of yet.
  • The retail speculative crowd is throwing around serious weight with GameStop today, but its appetites have been showing through with the likes of Tesla and FAANG before that. The Broader $NDX to $SPX ratio seems to similarly exhibit the charge: https://t.co/43fWH81O8S
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in GBP/JPY are at opposite extremes with 66.51%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/oMldfyQvSy
  • AUD/USD still tracks the opening range for January amid the limited reaction to Australia’s Employment report. Get your $AUDUSD market update from @DavidJSong here:https://t.co/zrP58XUTln https://t.co/slnI0wp7N4
  • The focus will shift as to whether Conte will search for a new parliamentary majority As a reminder, PD Lawmakers noted that they would guarentee support for Conte as head of new government if he resigns $EUR https://t.co/8m5VDxfmMf
  • Italian PM Conte is expected to resign as early as Monday - Officials $EUR
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Gold: 0.13% Oil - US Crude: -0.19% Silver: -0.47% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KzmYUuyoam
  • BoE Governor Bailey: - Digital innovations in payments are here to stay - Haven't yet landed on the appropriate design for a lasting digital currency - Doesn't think cryptocurrencies are lasting yet #BoE $GBP
GBP/JPY, EUR/JPY Nearing a Downside Break - EUR & GBP vs JPY Price Forecast

GBP/JPY, EUR/JPY Nearing a Downside Break - EUR & GBP vs JPY Price Forecast

Mahmoud Alkudsi, Analyst

EUR /JPY and GBP/JPY Technical Analysis

  • EUR/JPY and GBP/JPY price charts highlight bearish signals
  • Key levels and thresholds to consider

GBP/JPY, EURJPY – Bearish Outlook

Last week, Euro and British pound weakened against Japanese yen. On Friday, EUR/JPY closed the weekly candlestick in the red with 1.3% loss. Meanwhile, GBP/JPY closed with a bearish Doji pattern.

Last week, the Relative Strength Index (RSI) dipped below 50 on both pairs reflecting the end of uptrend momentum and a possible start of a downtrend move.

EUR/JPY Daily PRice CHART (AUG 25, 2018 – JAn 28, 2020) Zoomed Out

EURJPY daily price chart 28-01-20 zoomed out
Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

EUR/JPY Daily Price CHART (AUg 25 – JAn 28, 2020) Zoomed in

EURJPY daily price chart 28-01-20 zoomed in

Looking at the daily chart, we notice on Jan 23 EUR/JPY reversed direction and tumbled to a lower trading zone 120.00 – 121.48 as indicated in our latest update. On Friday, the price broke below the uptrend line originated from the Sep 3 low at 115.86 then closed below the 50-Day average producing two bearish signals. This week, the market opened with a breakaway gap providing another bearish signal.

A close below the low end of the zone may convince EUR/JPY bears to press towards 117.09. Yet, the weekly support levels printed on the chart (zoomed in) should be considered as some traders might exit/join the market around these points.

In turn, any failure in closing below the low end of the zone, could lead to a sideways move i.e. reverse the market’s direction towards the high end of the zone. Further close above this level, may send EUR/JPY towards 122.40. Although, the weekly resistance level underlined on the chart would be worth monitoring.

EUR Forecast
EUR Forecast
Recommended by Mahmoud Alkudsi
Download our fresh Q1 Euro Forecast
Get My Guide

GBP/JPY Daily PRice CHART (Aug 20, 2018 – JAn 28, 2020) Zoomed Out

GBPJPY daily price chart 28-01-20 zoomed out

GBP/JPY Daily PRice CHART (Sep 15 – JAn 28, 2020) Zoomed In

GBPJPY daily price chart 28-01-20 zoomed in

From the daily chart, we noticed that on Friday GBP/JPY plunged to a lower trading zone 143.25 – 141.85. This week, the market opened with a breakaway gap to the downside, then closed below the 50-Day average generating two bearish signals.

A close below the low end of the zone could embolden GBP/JPY bears to press towards 137.54. Further close below this level may cause more bearishness towards 133.31. That said, the weekly support levels and areas marked on the chart (zoomed in) should be kept in focus.

On the flipside, any close above the low end of the zone could mean a direction’s reversal towards the high end of the zone. Further close above this level might pave the way for GBP/JPY bulls to push towards 146.94. Nevertheless, the weekly resistance area and levels underscored on the chart should be watched 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