- Back-to-back doji candles on EUR/JPY’s daily chart show seller exhaustion.
- A big move on the higher side, however, may remain elusive, courtesy of trade tensions.
EUR/JPY is attempting gains this Friday morning in Asia amid signs of seller exhaustion on technical charts.
The currency pair is currently trading at 122.86, representing 0.10% gains on the day, having hit a high of 122.97 earlier today.
The minor gains come after back-to-back doji candles created in the previous two trading days. A doji is widely considered a sign of indecision in the marketplace.
In EUR/JPY’s case, however, that candle represents seller exhaustion. After all, it has appeared after a sell-off from 126.68 to 122.00.
The pair, however, may have a tough time capitalizing on bearish exhaustion if trade tensions keep risk assets under pressure. As of writing, the futures on the S&P 500 are lacking a clear direction. The index gained 25 points or 0.89% on Thursday.
The bid tone around the EUR may strengthen in Europe if Eurozone’s final consumer price inflation for April prints above the preliminary estimate of 0.7% month-on-month growth.
- R3 123.4
- R2 123.19
- R1 122.97
- PP 122.76
- S1 122.54
- S2 122.33
- S3 122.11
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