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
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
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
Gold
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
GBP/USD
Mixed
USD/JPY
Bullish
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
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/X15k6b4ZyB
  • The month of May saw equities rise across the board. The #Dow Jones and #DAX 30 will look to hold above nearby support while the #Nasdaq 100 may look to attack all-time highs. Get your #equities market update from @PeterHanksFX here: https://t.co/dQxkG68R0I https://t.co/cgfcOs14qG
  • There is a dramatic departure between yield curve pricing for a recession and other measures of near-term growth; the Q2’20 Atlanta Fed GDPNow is extremely alarming.Get your market update from @CVecchioFX here: https://t.co/eMd3T8EwDO https://t.co/56oUP6we9U
  • The #DAX has now closed the gap from the beginning of March with the index breaking above 61.8% fib at 11592. Get your DAX market update from @JMcQueenFX here: https://t.co/wr67nkxc8z https://t.co/CkxPZn1v3t
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/9CV6iZt40j
  • My weekend trading video: 'S&P 500 Rises on Trump China Presser, #NFPs and Rate Decisions Ahead' https://www.dailyfx.com/forex/video/daily_news_report/2020/05/30/SP-500-Rises-on-Trump-China-Presser-NFPs-and-Rate-Decisions-Ahead.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/ZvoGoibzj1
  • Hopes are high for deeper European economic integration as the continent battles back from the coronavirus slowdowns – but will it hold? What impact can this have on #Euro? Find out from @JStanleyFX here: https://t.co/b9ZWRd4cTr https://t.co/gngm5tKqjz
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data.Get your market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/iL7xlHLBiF
  • #Gold has a short-term bullish set-up that may play nicely with USD weakening. The longer and shorter-term path of least resistance remains higher. Get your $XAUUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/B4MVrg8f6i
  • The AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/Fo1wlWyz8r
GBP/JPY, EUR/JPY Tested the Support & Eye The Resistance - JPY Price Forecast

GBP/JPY, EUR/JPY Tested the Support & Eye The Resistance - JPY Price Forecast

2020-04-07 14:28:00
Mahmoud Alkudsi, Analyst
Share:

Euro & British Pound vs Japanese Yen Technical Outlook

  • EUR/JPY & GBP/JPY eye rallying further
  • Trading zones and signals to know

Weaker Momentum

On Thursday, EUR/JPY declined to its lowest level in three weeks at 116.35 then rallied after as some bears seemed to cover. In the following day, the weekly candlestick closed in the red with 2.5% loss. Meanwhile, GBP/JPY closed in the weekly candlestick on Friday with a Doji pattern highlighting the market’s indecision.

This week, the Relative Strength Index (RSI) rose from 41 to 50 on EURJPY reflecting a weaker downtrend move. On the other hand, the oscillator remained flat on GBPJPY near 50 signaling a lack of impulse to start uptrend move.

EUR/JPY Daily PRice CHART (NOV 15 , 2018 – April 7, 2020) Zoomed Out

EURJPY daily price chart 07-04-20 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 9 – April7 , 2020) Zoomed in

EURJPY daily price chart 07-04-20 zoomed in

Looking at the daily chart, we noticed that on April 2 EUR/JPY rebounded near the low end of current trading zone 116.45 – 119.63 then rallied eyeing a test of the 50-day average and the downtrend line originated from the Jan 16 high at 122.87.

A close above the high end of the zone may cause a rally towards 121.48. Further close above that level could extend the rally towards 124.10. Its noteworthy that, any break above the neckline of the double bottom pattern located at 121.15 would be a bullish signal and might lead EURJPY towards 125.82. That said, the daily and weekly resistance level underlined on the chart (zoomed in) should be kept in focus

In turn, any failure in closing above the high end of the zone could reverse the pair’s direction towards the low end of the zone. Further close below that level could encourage bears to send EURJPY even lower towards 113.22 . Yet, the weekly support levels printed on the chart should be monitored.

GBP/JPY Daily PRice CHART (NOV 15, 2018 – April 7, 2020) Zoomed Out

GBPJPY daily price chart 07-04-20 zoomed out
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Mahmoud Alkudsi
Improve your trading with IG Client Sentiment Data
Get My Guide

GBP/JPY Daily PRice CHART (JAN 27 – April 7, 2020) Zoomed In

GBPJPY daily price chart 07-04-20 zoomed in

From the daily chart, we noticed that on Friday GBP/JPY declined to current trading zone 128.84 – 133.30. Yesterday, the price rallied yet remained trading in the same zone. Today, the price reattempts moving to a higher trading zone.

Thus, a close above the high end of the zone may convince GBPJPY bulls to push for a test of 137.83. Further close above that level could encourage bulls to rally the market towards 143.20. Although, the weekly resistance levels underscored on the chart (zoomed in) should be watched closely.

On the flip-side, a close below the high end of the zone may send GBPJPY towards the low end of the zone. Further close below that level could entice bears to send the price even lower towards 125.50. In that scenario, the daily and weekly support levels marked on the chart should be considered.

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.