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.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • 🇳🇿 Building Permits MoM Actual: -6.5% Previous: -21.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇰🇷 GDP Growth Rate YoY Final due at 23:00 GMT (15min) Previous: 2.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇰🇷 GDP Growth Rate QoQ Final due at 23:00 GMT (15min) Previous: 1.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇰🇷 Inflation Rate YoY due at 23:00 GMT (15min) Expected: -0.2% Previous: 0.1% https://www.dailyfx.com/economic-calendar#2020-06-01
  • Heads Up:🇳🇿 Building Permits MoM due at 22:45 GMT (15min) Previous: -21.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • #Gold prices have rallied by as much as 3% from the Wednesday low up to this morning’s high, and price action is tip-toeing up to that $1750 psychological level that’s proven so difficult to break. Get your $XAUUSD technical analysis from @JStanleyFX here:https://t.co/MIbZgve7Pi https://t.co/ml6G1N0b7V
  • RT @realDonaldTrump: I will be delivering brief remarks from the Rose Garden at 6:30 P.M. Eastern to update on the Federal Response.
  • US Dollar weakness continues as selling pressure sustained over the last five trading sessions steers the DXY Index 2% lower. Get your $USD currency pairs market update from @RichDvorakFX here:https://t.co/LLlcezQmXK https://t.co/ln5dqmkCPr
  • The Canadian Dollar rally has taken USD/CAD into a key near-term support zone and we’re looking for a reaction down here today. Get your $USDCAD technical analysis from @MBForex here: https://t.co/xfYtytf4wF https://t.co/qfWjha3h37
  • Gold Price Outlook: Gold Goes Overbought, Finds Fibonacci Resistance https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/06/01/Gold-Price-Outlook-Gold-Goes-Overbought-JS-Finds-Fibonacci-Resistance.html https://t.co/dDQOzcMPxc
GBP/JPY, EUR/JPY Forecast: Technical Levels to Consider - JPY Price Outlook

GBP/JPY, EUR/JPY Forecast: Technical Levels to Consider - JPY Price Outlook

2020-04-02 14:49:00
Mahmoud Alkudsi, Analyst
Share:

EUR /JPY & GBP/JPY Technical Outlook

  • EUR/JPY & GBP/JPY recover some of their recent losses
  • Levels and signals to monitor

Weaker Japanese Yen

On Wednesday, EUR/JPY surged to its highest level in nearly five weeks at 121.15 then retreated after. Yet, the weekly candlestick closed in the green with 1.3% gain. Similarly, GBP/JPY rallied to nearly three weeks high at 134.78 then closed the weekly candlestick with 4.1% gain.

This week, the Relative Strength Index (RSI) dropped from 50 to 37 on EURJPY signaling the start of downtrend move. On the other hand, the oscillator remained flat below 50 highlighting a paused downtrend move.

EUR/JPY Daily PRice CHART (Oct 30 , 2018 – April 4, 2020) Zoomed Out

EURJPY daily price chart 02-04-20 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 (Jan 12 – April4, 2020) Zoomed in

EURJPY daily price chart 02-04-20 zoomed in

Looking at the daily chart, we noticed that on Jan 24 EUR/JPY broke below the uptrend line originated from the Sep 3 low at 115.86, then started a down trend move led the price in March 9 to 116.12- its lowest level in six months (see the chart zoomed out).

On March 12, the market corrected and created a higher low at 116.31then rallied after. Yet, On Monday, EURJPY declined then closed below the 50-day average. Additionally, the pair moved to a lower trading zone 116.45 -119.63 generating two bearish signals.

Thus, a close below the low end of the zone could encourage bears to press towards 113.22 . Further close below that level opens the door for more bearishness towards 111.14. Although, the weekly support levels underscored on the chart (zoomed in) should be kept in focus.

In turn, any failure in closing below the low end of the zone reflects bears reluctance. This could reverse the pair’s direction towards the high end of the zone. Further close above that level could extend the rally towards 121.48. Nevertheless, the daily resistance levels printed on the chart should be considered.

GBP/JPY Daily PRice CHART (NOv 20, 2018 – April 4, 2020) Zoomed Out

GBPJPY daily price chart 02-04-20 zoomed out
EUR Forecast
EUR Forecast
Recommended by Mahmoud Alkudsi
Download our fresh Q1 Euro Forecast
Get My Guide

GBP/JPY Daily PRice CHART (Nov 12 – April 4, 2020) Zoomed In

GBPJPY daily price chart 02-04-20 zoomed in

From the daily chart, we noticed that on Feb 25 GBP/JPY broke below the uptrend line originated from the Oct 7 low at 130.43. On March 16, the pair rebounded from 124.03 - its lowest level in nearly three and half years. See the chart (zoomed out). Although, the price rallied after as some bears seemed to cover. Yesterday, the price moved to a lower trading zone 128.84 – 133.30.

Any close above the high end of the zone may send GBPJPY towards 137.83. Further close above that level could mean more bullishness towards 143.20. That said, the weekly resistance levels marked on the chart (zoomed in) should be watched closely.

On the flip-side, another close below the high end of the zone increases the likelihood for GBPJPY to fall towards the low end of the zone. Further close below that level may convince bears to lead the price towards 125.50. In that scenario, the weekly support level underlined on the chart would be worth monitoring.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Mahmoud Alkudsi
Building Confidence in Trading
Get My Guide

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

News & Analysis at your fingertips.