EUR/JPY traded higher on Tuesday, breaking above the downside resistance line drawn from the high of June 5th. The recent recovery started yesterday, when the rate hit support at the crossroads of the 119.30 level and the upside support line drawn from the low of May 6th. Thus, bearing in mind that it continues to trade above that line, and also that it broke the short-term downside one, we would consider the near-term picture to be positive.
If the bulls are willing to stay behind the steering wheel, we may see them soon emerging above the high of June 17th, at 121.25, a move that could pave the way towards the high of the day before, at around 122.10. Another break, above 122.10, may carry larger bullish implications, perhaps setting the stage for extensions towards the 123.50 zone, near the inside swing low of June 5th.
Looking at our short-term oscillators, we see that the RSI stands above 50 and points up, while the MACD, already above its trigger line, has just poked its nose above zero. Both indicators detect positive momentum and corroborate our view for some further advances in the near term.
In order to start examining whether the bears have stolen the bulls’ swords, we would like to see a dip below 119.30. Such a move would not only confirm a forthcoming lower low, but would also take the rate below both the aforementioned diagonal lines. The bears may then get encouraged to shoot for the low of May 28th, at 118.50, the break of which may extend the decline towards the low of the day before, at 117.70.
JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services
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.
72,99% 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: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.