XM does not provide services to residents of the United States of America.

Technical Analysis – EURJPY retreats below 50-day SMA



EURJPY has been in a prolonged uptrend since early March, generating consecutive multi-year peaks. However, the pair has been losing ground in the short term after its rally paused at the eight-year high of 148.39.

The momentum indicators currently suggest that bearish forces are strengthening. Specifically, the RSI has crossed below its 50-neutral mark, while the MACD histogram is retreating further below both zero and its red signal line.

If sellers push the price lower, initial support could be met at the recent low of 142.54. Diving beneath that region, the bears could aim for 141.00 before the spotlight turns to the September low of 137.30. Even lower, the 135.50 hurdle could provide downside protection.

On the flipside, bullish actions could boost the price towards the 50-day simple average (SMA), currently at 144.28. Piercing through that zone, the pair could ascend towards 146.12 or higher to test the 147.75 barrier.  A break above the latter might then set the stage for the eight-year high of 148.39.

In brief, EURJPY appears ready to extend its pullback as negative momentum is intensifying. Therefore, a break below the recent low of 142.54 might open the door for further downside.

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.