- 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.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays depressed below 1.1000 on tepid risk sentiment
EUR/USD is trading on the backfoot below 1.1000 in the early European session on Wednesday, as the US Dollar clings to recovery gains amid lingering Chinese economic concerns and the Middle East escalation. The focus now stays on the ECB/ Fed-speak and the FOMC Minutes.
GBP/USD sits at multi-week low below 1.3100, awaits FOMC minutes
GBP/USD struggles to capitalize on the previous recovery, staying defensive below 1.3100 in early Europe on Wednesday. The US Dollar consolidates recent gains amid risk aversion, awaiting the Fed Minutes for a fresh directional impetus in the pair.
Gold price keeps the red below $2,630 support breakpoint, FOMC minutes awaited
Gold price trades with a negative bias for the sixth straight day amid smaller Fed rate cut bets. Hopes of a possible Hezbollah-Israel ceasefire further undermine the safe-haven commodity. Traders look to the FOMC minutes for short-term impetuses ahead of the US inflation figures.
Bitcoin shows signs of weakness
Bitcoin is hovering at a critical support level, and a drop below it could signal a downturn, while Ethereum and Ripple are approaching important resistance levels, where a rejection might indicate a shift towards bearish momentum.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.