GBP/JPY, EUR/JPY Levels & Signals to Monitor - JPY Price Forecast
EUR /JPY & GBP/JPY Technical Analysis
Stronger Yen Across the Board
Last week, EUR/JPY declined to 116.12 – its lowest level in nearly six months. However, the price rallied after and closed the weekly candlestick in the green with 0.8% gain. On the other hand, GBP/JPY declined to 131.23 -its lowest level in five months and closed the weekly candlestick in the red with 3.5% loss.
The Relative Strength Index (RSI) remained below 50 on EURJPY & below 70 on GBPJPY highlighting that bears were in charge.
EUR/JPY Daily PRice CHART (NOV 21, 2018 – Mar 17, 2020) Zoomed Out
EUR/JPY Daily Price CHART (Jan 12 – Mar 17, 2020) Zoomed in
Looking at the daily chart, we noticed that on Friday EUR/JPY failed to overtake the 50-day average providing a bearish signal. Additionally, the price remained below the downtrend line originated from the Jan 16 high at 122.89. Later on, the price moved to current trading zone 118.24 – 119.63.
Thus, a close below the low end could send EURJPY towards 116.45. Further close below this level may embolden bears to press towards 114.74. Although, the weekly support levels underlined on the chart (zooned in) should be considered.
On the other hand, any close above the high end of the zone could lead EURJPY towards 121.48. Nevertheless, the daily and weekly resistance levels underscored on the chart should be kept in focus.
GBP/JPY Daily PRice CHART (SEP 20, 2018 – Mar 17, 2020) Zoomed Out
GBP/JPY Daily PRice CHART (JAN 12 – Mar 17, 2020) Zoomed In
From the daily chart, we noticed that last week GBP/JPY resumed bearish opened with a downside gap then resumed bearish price action. Yesterday, the market tested the high end of current trading zone 132.04 – 129.90. However, the price declined after.
Hence, a close below the low end of the zone may send GBPJPY towards 127.34. Further close below this level could mean more bearishness toward 125.50. That said, the weekly support levels marked on the chart should be watched closely.
On the flip -side, any close above the high end of the zone might cause a rally towards 133.31. Further close above this level could extend this rally towards 135.59. Although the daily resistance levels printed on the chart would be worth monitoring.
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.