EURJPY Regains | Forex Reviews
The strengthening yen tends to be seen as a reflection of concern in the markets. Having threatened to form a recovery a few weeks ago, the bears have reclaimed control. This is why the latest breakdown on EURJPY is something to worry about (Forex Reviews).
EURJPY – H4 – Long Term | Forex Reviews
At the moment the cross is up 0.17% at 121.29 and a surpass of 122.80 (20-day sma) would expose 123.88 (55-day sma) and then 124.25 (high May 31). On the other hand, the immediate support aligns at 120.75 (2016 low Jun.3) ahead of 118.74 (2013 low Feb.25). Just a fast bull trade. CCI and TDI showing bullish strength. First TP will be based on the 21 EMA (Green MA).
EURJPY Bullish Butterfly
The closing break below the support of the May low at 121.50 has taken the pair to a new low dating back to April 2014. The concern from a technical perspective is that there is further downside potential. The RSI is deteriorating and is only just below 40, whilst the February sell-off plumbed the depths of the low 20s on the RSI. Also the Stochastics are negatively configured with further room for weakness. Selling into strength on EUR/JPY seems to be the strategy now, with the resistance in place between 121.45/122.00.
Short Trade EURJPY 1H Buy
Alternatively, if prices rise back above 122.00 and break the May 31 high of 124.17 to clear the 50-day moving average resistance, this will pause the downtrend to indicate short term bottoming and bring about a more bullish outlook. Currently prices are testing the 50% Fibonacci at 121.94. Remaining above it is important, otherwise a deeper correction of the 94.09 – 149.76 upleg would shift the longer term bias to bearish.
EUROJPY Possibly One More Drop
The daily technicals are supporting the bearish view. RSI is below 50 and MACD is below zero. The market is below the 200-day and 50-day moving averages, which are both sloping down. There is risk for further downside towards 121.00.
Chart Of The Day – EURJPY
The RSI is deteriorating and is only just below 40, whilst the February sell-off plumbed the depths of the low 20s on the RSI. Also the Stochastics are negatively configured with further room for weakness. Selling into strength on EUR/JPY seems to be the strategy now, with the resistance in place between 121.45/122.00. The hourly chart reflects the bearish near term momentum and that the bulls would only realistically consider a rally as anything to get excited about on a move above 121.60, but even then the rally is stil just a rebound within the sharper downtrend which comes in around 123.00.
After a short-lived test of the 121.80 area, EURJPY has managed to regain steam and advance to the 122.60 area, although losing vigour afterwards.