EURJPY has moved out of its one-month bearish channel to bounce towards the key psychological level of 118 this week. Prices turned lower just ahead of 118 as this proved to be an important resistance area. Just below it lies the 200-day moving average which converges with a Fibonacci level. The 38.2% Fibonacci retracement level of the recent downleg from 122.87 to 114.84 is found at 117.90.
Upside momentum has faded as RSI appears to be turning lower and still remains in bearish territory below 50. MACD is below zero and indicates a bearish bias.
Any further downside moves would target the 115 area and the March 17 low at 114.84. From here, another key level at 112 would come into view and would act as an important support area.
The medium-term market structure remains bearish as long as EURJPY is capped below the 200-day moving average. The market would have to rise above the 50% Fibonacci retracement level at 118.85 of the recent downleg in order for EURJPY to shift to a more bullish bias. A move above the 120-psychological level would confirm a change in the trend.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.