EURJPY is testing the 131.46-131.57 base of the 10-day consolidation, which is fortified by the 38.2% Fibonacci retracement of the up leg from 128.32 until the four-month high of 133.47. The pair glided into a sideways market after the rally that began off the 128.32 level surrendered some ground from the 133.47 peaks. Currently, the 50- and 100-period simple moving averages (SMAs) are not endorsing any clear price trend.
The short-term oscillators are showing that sellers are in command. The MACD is slightly beneath zero and its red trigger line. Further promoting negative price action in the pair, is the strong negative charge of the stochastic oscillator, and the RSI, which is falling in the bearish zone.
If positive impetus remains feeble, instant downside limitations could arise from the hardened floor of the trading range from 131.57 until 131.46. If sellers manage to drive the price beneath this key boundary, the price may then meet the 131.21 low before tackling another critical zone of support existing from the 50.0% Fibo of 130.90 until the 130.68 barriers, an area reinforced by the 200-period SMA at 130.79.
Alternatively, if buyers re-emerge and gain traction off the 131.46-131.57 foundation, an initial tough section of resistance could develop from the blue Kijun-sen line at 132.08 until the 23.6% Fibo of 132.26. Pushing past these multiple barriers, the 132.55 high may hinder the price from challenging the 132.66-132.91 resistance ceiling. However, conquering this, the price could propel towards the 133.36 and 133.47 peaks. From here, buyers would need to muster a more profound push to overcome the nearby resistance band of 133.57-133.75 to tackle the 133.91-134.12 obstacle, that being an area of highs identified at the beginning of June.
Summarizing, EURJPY is still neutral around the upper part of the rally despite sellers currently possessing the upper hand. A break below the 131.46-131.57 floor could boost the negative trajectory, while a jump above the 132.91 high may see buoyancy in the pair's return.
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.