The FX markets have been fairly quiet so far this week and price action on the whole has been range bound. Indeed, after last week’s rally, safe haven Japanese yen pairs have all pulled back a little at the start of this week, despite the fact global equity indices have marched on higher. Thus, if we are to see the re-emergence of a trend in FX, it will likely be in yen pairs pushing higher along with stocks. With the likes of the USD/JPY, EUR/JPY, AUD/JPY and CAD/JPY all pushing higher for 3 consecutive weeks, I wouldn’t be surprised if any of these pairs were to turn around now and push higher again.

Among the yen pairs, the EUR/JPY will be a good one to watch for further developments this week, ahead of the Eurozone PMI data on Thursday. Technically, this pair looks somewhat bullish after it broke above its short term bear trend and resistance around 125.45 to 125.70 last week, before stalling at 126.80. The 125.45-125.70 range is now the key support area that needs to be defended to keep the bullish trend intact. Meanwhile, any move above the 126.80 level is likely to trigger further technical buying, initially towards the 200-day moving average (127.32) or the long-term 61.8% Fibonacci retracement level (127.65).

Figure 1:

EURJPY

Source: TradingView and FOREX.com.

Risk Warning Notice Foreign Exchange and CFD trading are high risk and not suitable for everyone. You should carefully consider your investment objectives, level of experience and risk appetite before making a decision to trade with us. Most importantly, do not invest money you cannot afford to lose. There is considerable exposure to risk in any off-exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of the markets that you are trading. Margin and leverage To open a leveraged CFD or forex trade you will need to deposit money with us as margin. Margin is typically a relatively small proportion of the overall contract value. For example a contract trading on leverage of 100:1 will require margin of just 1% of the contract value. This means that a small price movement in the underlying will result in large movement in the value of your trade – this can work in your favour, or result in substantial losses. Your may lose your initial deposit and be required to deposit additional margin in order to maintain your position. If you fail to meet any margin requirement your position will be liquidated and you will be responsible for any resulting losses.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD nears 1.1100 ahead of the close

The EUR/USD pair is at daily lows after US and Chinese authorities confirmed phase one on a trade deal agreed. Some tariffs will be rolled back as China agreed on “massive purchases” of US goods, according to President Trump.

EUR/USD News

GBP/USD extends corrective decline to 1.3330 region

The GBP/USD pair continues shedding part of its post-UK election’s gains, although at levels last seen several months ago. Hopes that PM Johnson will pass his Brexit deal through Parliament will keep the Sterling on the winning side.

GBP/USD News

Financial Big Brother is coming, but Bitcoin will remain

Central banks move quickly looking to oversight all payments. Greece could impose sanctions if digital means are not used in at least 30% of payments. Once inside the crypto ecosystem, governments have little capacity for financial censorship.

Read more

Gold: Steadily climbs to session tops, upside seems limited

Gold extended the overnight rejection slide from 100-day SMA resistance and witnessed some follow-through selling during the Asian session on Friday.

Gold News

GBP/USD extends corrective decline to 1.3330 region

The GBP/USD pair continues shedding part of its post-UK election’s gains, although at levels last seen several months ago. Hopes that PM Johnson will pass his Brexit deal through Parliament will keep the Sterling on the winning side.

GBP/USD News

Forex Majors

Cryptocurrencies

Signatures