- EUR/JPY has managed to retreat back into the consolidation area placed in a range of 138.84-143.00.
- The cross has picked strength as anxiety among investors soars ahead of BOJ policy.
- A range shift by the RSI (14) into the 40.00-60.00 from the bearish territory indicates that the downside momentum has faded,
The EUR/JPY pair has sensed a buying interest after a marginal correction to near 139.00 in the Tokyo session. The cross has resumed its upside journey and has surpassed the immediate resistance of 139.30. The asset is gaining strength ahead of the monetary policy announcement by the Bank of Japan (BoJ).
Investors will keep an eye on commentary from BOJ Governor Haruhiko Kuroda amid growing chatters over an exit from the ultra-loose monetary policy by the BOJ.
EUR/JPY has managed to retreat back into the consolidation area placed in a range of 138.84-143.00. The cross sensed a responsive buying action after dropping to near 138.00 last week. A recovery move by the Euro is pushing the asset toward the 20-period Exponential Moving Average (EMA) at 139.56, which might strengthen the shared currency bulls further.
A range shift move by the Relative Strength Index (RSI) (14) from the bearish region of 20.00-40.00 to the 40.00-60.00 territory is indicating that the downside momentum has almost faded now.
For further upside, a break above January 5 low at 139.97 will drive the asset towards January 6 high at 141.45 followed by December 28 high around 143.00.
On the flip side, a downside move below the previous week’s low at 138.00 will drag the cross toward January 3 low at 137.39. A slippage below the latter will expose the asset for more downside toward April 14 low at 135.51.
EUR/JPY four-hour chart
-638095169252860025.png)
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
GBP/USD drops below 1.2650 after weak UK data
GBP/USD stays under bearish pressure and trades below 1.2650 on in the European session on Friday. The data from the UK showed that the Gross Domestic Product contracted by 0.1% on a monthly basis in October and weighed on Pound Sterling.
EUR/USD seems vulnerable around 1.0460 area amid divergent ECB-Fed expectations
The EUR/USD pair remains depressed during the Asian session on Friday and touches a near three-week low, around the 1.0455 area in the last hour. Moreover, the fundamental backdrop suggests that the path of least resistance for spot prices is to the downside and supports prospects for an extension of the recent downtrend.
Gold price struggles to capitalize on modest intraday gains, remains below $2,700
Gold price attracts some dip-buying and reverses a part of Thursday's retracement slide. Geopolitical risks, trade war fears and Fed rate cut bets continue to benefit the commodity. Expectations for a less dovish Fed and elevated US bond yields might cap the precious metal.
Bitcoin and Ripple stalls while Ethereum eyes rally
Bitcoin faces resistance near $101,100, hinting at a potential downturn. At the same time, Ethereum eyes a rally if it can firmly close above $4,000, and Ripple holds support at $1.96, with a breakdown signaling a possible decline.
Can markets keep conquering record highs?
Equity markets are charging to new record highs, with the S&P 500 up 28% year-to-date and the NASDAQ Composite crossing the key 20,000 mark, up 34% this year. The rally is underpinned by a potent mix of drivers.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.