EUR/JPY technical analysis: U-Turn drives Euro below 121.00 handle against Yen

EUR/JPY has a sharp reversal down move this Tuesday.
More weakness is expected below the 120.85 support.

Flavio Tosti Independent Analyst

EUR/JPY daily chart

EUR/JPY is trading in a downtrend below the 200-day simple moving average (DMA). However, in October the market rose sharply and is now hanging in a range near the 121.00 handle.

EUR/JPY four-hour chart

On the four-hour chart, the spot is trading above its100 and 200 SMAs, suggesting bullish momentum in the medium term. However, the market is trapped in a range and the bulls would need to overcome the 121.20 and 121.50 resistance on a daily basis in order to resume the bulls trend.

EUR/JPY 30-minute chart

The market had a sharp reversal down this Tuesday. EUR/JPY is under pressure below the 120.85 resistance and the main SMAs. Further weakness can be expected towards the 120.45 and 120.10 levels.

Additional key levels

EUR/JPY

Overview
Today last price	120.78
Today Daily Change	-0.08
Today Daily Change %	-0.07
Today daily open	120.86

Trends
Daily SMA20	120.24
Daily SMA50	118.94
Daily SMA100	119.66
Daily SMA200	122.08

Levels
Previous Daily High	121.11
Previous Daily Low	120.76
Previous Weekly High	121.48
Previous Weekly Low	120.28
Previous Monthly High	121.48
Previous Monthly Low	117.07
Daily Fibonacci 38.2%	120.89
Daily Fibonacci 61.8%	120.98
Daily Pivot Point S1	120.71
Daily Pivot Point S2	120.56
Daily Pivot Point S3	120.36
Daily Pivot Point R1	121.06
Daily Pivot Point R2	121.26
Daily Pivot Point R3	121.41

Author

Flavio Tosti

Independent Analyst

EUR/USD stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.