EUR/JPY technical analysis: Nears 119, six month falling trendline breached


  • EUR/JPY has found acceptance above a key trendline from April highs. 
  • The breakout is backed by bullish readings on key indicators. 
  • The pair could challenge the 50-day moving average hurdle in the short term. 

EUR/JPY is looking north, having found acceptance above key falling trendline resistance.

The pair jumped 0.76% on Thursday, confirming an upside break of the trendline connecting April 17 and July 1 highs.

The breakout validates the bullish higher low of 117.07 created on Oct. 7 and indicates the path of least resistance is to the higher side.

The breakout is also backed by a bullish crossover on the MACD histogram and ascending 5- and 10-day moving averages.

As a result, a convincing break above 119.00 could be in the offing. On the higher side, key resistance is seen at 119.86 (50-day moving average).

The bullish outlook would be invalidated if the pair falls back below the trendline. That could happen if the ongoing US-China trade talks end on a sour note, triggering a flight to safety. As of writing, the pair is trading at 118.94, representing marginal gains on the day. 

Daily chart

Trend: Bullish

Technical levels

EUR/JPY

Overview
Today last price 118.94
Today Daily Change 0.17
Today Daily Change % 0.14
Today daily open 118.78
 
Trends
Daily SMA20 118.26
Daily SMA50 118.14
Daily SMA100 119.9
Daily SMA200 122.41
 
Levels
Previous Daily High 118.96
Previous Daily Low 117.56
Previous Weekly High 118.2
Previous Weekly Low 117.07
Previous Monthly High 120.01
Previous Monthly Low 115.86
Daily Fibonacci 38.2% 118.42
Daily Fibonacci 61.8% 118.1
Daily Pivot Point S1 117.91
Daily Pivot Point S2 117.04
Daily Pivot Point S3 116.52
Daily Pivot Point R1 119.3
Daily Pivot Point R2 119.82
Daily Pivot Point R3 120.69

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD flirts with 34-month lows amid after poor German figures, amid coronavirus fears

EUR/USD is trading just above 1.0820, the lowest since 2017, as the coronavirus outbreak is taking its economic toll on Apple among others. The German ZEW Economic Sentiment missed expectations with 8.7 points.

EUR/USD News

GBP/USD remains depressed below 1.30 as UK jobs figures miss expectations

GBP/USD is trading below 1.30 after UK wages decelerated to 2.9% yearly in December, worse than expected. Brexit concerns are also weighing and coronavirus headlines are eyed.

GBP/USD News

Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. 

Read more

Gold: Positive beyond six-week-old falling trendline

Gold prices take the bids above $1585, +0.35%, during the pre-European trading on Tuesday. The yellow metal recently broke a downward sloping trend line stretched from January 08. Early-month top on the buyer’s radar.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures