Technical Analysis – EURJPY’s recent rebound is not enough; remains in descending channel



EURJPY is fluctuating within the one-month-old falling channel, testing resistance from the falling lines of the Ichimoku indicator and the 20-period simple moving average (SMA) near 128.15. The price rebounded off the 127.45 support level, with the technical indicators endorsing/backing the ongoing upside move. The MACD is holding above its trigger line in the negative region, while the RSI is approaching its neutral threshold of 50.

In the positive scenario, where the price snaps the 128.15 barrier and closes above the cloud's lower boundary and the descending trend line, the next target could be the 128.80 hurlde. Running higher, the bulls will need to drive beyond 129.50 to access the 130.00 psychological mark.

Should the bears come into play, the price could initially test the 127.45 and 127.30 support levels before heading towards the return line around 126.70. Not far below, some consolidation could take place near 126.40, registered on February 9.

In brief, despite its resilience above 127.45, EURJPY has yet to show any clear bullish signals, remaining trapped within a downside channel. A move above 128.80 would switch the short-term picture to neutral.

Latest News

Technical Analysis – Natural gas futures tick higher as bullish forces linger



Technical Analysis – USDCAD plummets but 200-day SMA caps downside


Technical Analysis – GBPJPY battling to keep its feet above trendline


Technical Analysis – JP 225 index defends bulls, but not out of the woods yet

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.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

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