EUR/JPY rebounds but hits resistance at 128.60

EUR/JPY traded higher yesterday, after hitting support at 127.50. However, the recovery stayed limited near the 128.60 territory, where the rate hit resistance and retreated again. Overall, EUR/JPY continues to trade below the downside resistance line taken from the high of October 29th, and thus, we will consider the short-term picture to be negative.

If the bears are willing to stay in the driver’s seat, then we could see another test near 127.50 soon. A break lower would confirm a forthcoming lower low and could initially challenge the 127.15 barrier, marked by the inside swing high of February 8th, where another dip could extend the fall towards the low of the next day, at 126.45. If that hurdle is not able to stop the downtrend either, then we could see the sellers diving towards the 126.10 or 125.60 territories, marked by the lows of February 4th and January 27th, respectively.

Turning our gaze to the short-term oscillators, we see that the RSI turned down again after hitting resistance near its 50 line, while the MACD, although negative, still lies above its trigger line. Both indicators detect downside speed, which supports the notion for further declines, but fact that the MACD remains above its trigger line makes us careful over another bounce before the next negative leg.

Nonetheless, in order to start examining the bullish case, we would like to see a strong rebound back above 129.50. The rate will already be above the aforementioned downside line, and we could see a test near the round figure of 130.00 or the 130.20 zone, marked by the high of November 19th and 12th, respectively. If the bulls are not willing to stop there, then we could see them targeting the 130.60 obstacle, marked by the high of November 15th, the break of which could extend the advance towards the peak of November 8th, at 131.45.


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

68.02% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure:

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD on the way to 1.1280 key support

EUR/USD fails to cheer greenback weakness, stays depressed around 1.1310 during the initial Asian session on Friday. While portraying the sober mood of the major pair traders, the quote remains below 200-SMA for the first time in a fortnight.


GBP/USD holds above 1.3600 as dollar fails to capitalize on US data

GBP/USD tested 1.3600 earlier in the day but managed to stage a recovery in the early American session. The greenback is having a hard time gathering strength as investors assess the mixed macroeconomic data releases from the US.


Gold bulls looking for a re-test of November high at 1,877.15

Gold resumed its advance after a short-lived consolidative stage, reaching a fresh two-month high of $1,847.92 a troy ounce. The dollar came under renewed selling pressure after the US released mixed economic figures.

Gold News

Decentraland holds support but MANA may return to $2

Decentraland price action is, at present, very indecisive. However, while the overall outlook is bearish – especially within the Ichimoku Kinko Hyo system, there is evidence that a turnaround to the upside may be coming soon.

Read more

When real rates are negative for a sustained period, is it a sign of looming recession?

We agree that inflation should moderate this year due to the money side of things, but worry that monetary policy is powerless against most of the supply chain issues, commodity prices, greedy consumer goods companies, and that weird labor shortage.

Read more