EUR/JPY Price Analysis: Bulls testing bearish commitments at critical resistance

EUR/JPY bears are eyeing a significant downside correction on the monthly time frame.
The price is testing a critical daily and 4-hour resistance area.

Ross J Burland FXStreet

The following is a bearish perspective of the current market structure in EUR/JPY across the time frames, from the monthly chart all the way down to the 4-hour chart.

Monthly chart

The price has broken below monthly dynamic support that would now be expected to act as a counter trendline while price moves back to test the old resistance in a 61.8% Fibonacci retracement near 127.00.

Weekly chart

The weekly chart shows that the price is leaving a bearish wick and should the week close with a lower weekly closing low, then the wick would be expected to be filled on the lower time frames in due course.

Daily chart

Meanwhile, from a daily perspective, the price has corrected into resistance which is so far holding up.

Expectations are for a downside continuation at this juncture.

4-hour chart

From the 4-hour chart, we can see that the price is moving in on the 21-EMA and prior lows which are the neckline of the M-formation.

This are would be expected to act as resistance, resulting in a move to the downside and towards the monthly target area over time.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD keeps its focus on 1.1800

EUR/USD is holding its ground near two-day highs around 1.1750 as Thursday’s session is drawing to a close. The pair is drawing support from a more constructive risk mood, helped by easing EU–US trade tensions and a softer US Dollar. Looking ahead, attention shifts to Friday’s flash PMI releases from both Europe and the US.

GBP/USD flirts with 1.3500 on persistent USD selling

GBP/USD is regaining momentum on Thursday and pushing up towards two-week highs around the 1.3500 mark. In the process, Cable is leaving Wednesday’s brief wobble behind and slipping back into its upward trend, helped by ongoing selling pressure on the Greenback ahead of key advanced PMI data on Friday.

Gold continues scaling new record highs, climbs above $4,950

Gold extends its record-setting rally for the fifth consecutive day on Friday, as persistent geopolitical uncertainties continue to drive safe-haven flows. Meanwhile, expectations for further policy easing by the Federal Reserve contribute to the de-dollarization trend and further underpin the non-yielding bullion, which remains on track to register gains for the third successive week and appears unaffected by extremely overbought conditions.

Bank of Japan expected to hold rates, markets seek clues on further tightening

The Bank of Japan is expected to leave its benchmark interest rate unchanged at 0.75% after concluding its two-day monetary policy meeting next Friday. The Japanese central bank hiked rates to its highest level in three decades in December, and will likely stand pat on Friday to better assess the economic consequences of previous rate hikes.

Trump walks back NATO tariffs, signals de-escalation

What began as a sharp escalation risk quickly turned into a de-escalation signal. Earlier this week, markets briefly priced in escalation risk after Donald J. Trump proposed a 10% tariff hike on eight NATO nations amid the Greenland dispute.

XRP defends $1.90 support as ETFs attract inflows despite retail caution

Ripple (XRP) is consolidating above $1.90, a short-term support level, at the time of writing on Thursday. This mild uptick marks two consecutive days of a strengthening technical outlook, following recent market-wide volatility.