EUR/JPY At 9-month lows

EUR/JPY tumbled with around 300 pips this morning and marked 9-month lows. The single currency was set under huge pressure thanks to the political woes in Italy and the disappointing EZ PMIs prints collaborated for the acceleration of the bearish strength. On the other hand the Japanese Yen is staging strong on the back up of a new set of global risk-aversion trade, led by a sell-off across equity markets.
Technically speaking the short-term outlook remains bearish. On the four hour time frame the price has crossed to below its bearish moving averages. Stochastic is located within oversold territory and is showing strong bearish momentum. RSI has started to turn north although is slightly below its 30.

EUR/JPY bounced from the multi month low at 128.32 and currently is trading 128.60. However this recovery is not sustainable because around 128.50 the pair is quite vulnerable. Below this level bears might meet the key 128.00 psychological mark which if broken will bring weakness towards 127.50 area.  The upside remains unattractive despite the attempts for recovery and bulls should be more pushy in order to regain the 130.00 hurdle. 

EUR/JPY Retracing between Fibo levels

The EUR/JPY started the new trading week uplifted and reached intraday high at 131.40, up 0.26% for the day. But couldn’t keep the breeze and go as met high wave that tumbled the pair and currently its thrown into the shallows of 131.00.

As seen on the four hour time frame the pair visited today two important Fibonacci retracement levels of latest April to May bearish run. The 100-day and 200-day SMAs had eased their bearish slopes and are crossing each other around the daily resistance that coincides with the 50% Fibo, while the 20-day SMA is holding to the upside. RSI and stochastic retreated from overbought areas and are showing strong bearish momentum.  

So technically speaking the short-term outlook seems to be bearish. However in the medium-term the trend is bullish and thus seen the current drop might be considered as a pull back before the next attack of the bulls.  First target to meet is the daily high at 131.40 and next comes with the 132.00 figure. The downside is supported by 131.00 followed by 130.78 swing high and then 130.00 swing low.

Key events for the single currency are scheduled for tomorrow with the Eurozone and Germany GDP data and the German Zew survey and in case of surprisingly good numbers can fuel additionally the euro bulls.

EUR/JPY Consolidating around 200-day EMA

With the start of the new week EUR/JPY is correcting from the 5-month low, posted  last Friday at 130.92. During the day the pair is up with 0.18%, having marked daily high at 131.73 and low at 131.06. However the today’s recovery if far from the point where the uptrend was broken namely at the 134.00 level and the 61.8% Fibonacci retracement of the 2014 to 2016 bearish run. As seen on the daily chart RSI and stochastic bounced from their extreme oversold territories and are showing some upward momentum but yet remain within negative area. Currently the price has settled around the flat 200-day EMA, which last week acted as major support and now bulls are dedicated to fight. But the bulls should aim higher, at least 135.10, in order to revive the uptrend. The current stabilisation around the 200-day EMA and slow indicators are confirming some consolidation. On the other hand the Japanese Yen is quite vulnerable  and the bearish sentiment might lead the pair to downwards. The daily low is providing first support, which if broken, doors will be opened for testing the 50% of above mentioned Fibo at 129.50.

EUR/JPY Started the week with recovery, but remains capped by the 100-day and 200-day SMAs

During Friday’s session the EUR/JPY pair finally run out of the bearish sentiment which dominated from August 16th and marked high at 128.80. Today the pair is developing around this level but is going to close slightly lower with current market price 128.69. 

On the four-hour time frame the priced crossed to above its bearish 20-day SMA and meanwhile remains well below the 100-day and 200-day SMAs. Furthermore the last two ones are crossing each other at 129.65, which indicates limitation of the upward strength. Stochastic and RSI has recovered from the extreme oversold territories and both are displaying strong bullish momentum. 

Should the pair succeed to conquer Friday’s high at 128.80, further recovery is underway in the short term. 129.65 remains critical level and in case of breaking it, bulls would prevail longer in the play.  

EUR/JPY Meets stong support at the 100-day SMA

The EUR/JPY pair moved slightly higher today, but bulls couldn’t march beyond the daily high at 130.86, being influenced by the week Japanese yen and the US treasury yields that closed lower. 

During the afternoon the pair is keeping neutral attitude and the current market price is 130.57.

On the four-hour time frame the price has crossed to below its 20-day SMA, that is turning to downside, but yet is above the 100-day and 200-day SMAs. Stochastic has just reached its mid-line, but has sharply turned to south. RSI is also located around the middles with strong bearish slope. However indicators are not pointing any sure directional strength. For the time being critical level remains the immediate support at 129.85, where now is located the 100-day SMA. Only in case of breaking it, the pair will be poised to extend its downward movement towards 129.50 (late July’s lows). Looking to the upside as first resistance should be considered the 130.70 – 130.80 area.

EUR/JPY skyrocketed and pinned fresh yearly high

The good macro data from the euro area released today fuelled the euro bulls and the EUR/JPY pair skyrocketed and marked its highest level for more than a year at 125.80.

After the first lap of the French elections the pair made sharp U turn and since then we are witnessing strong rally, which is clearly seen on the daily graphic. Technical indicators are showing extreme overbought conditions, but yet are aiming higher, so the pair is poised to extend the rally before correcting.

The short term outlook also remains bullish. The four-hour time frame is showing that the price is strongly moving above the100-day SMA and today has crossed to above and the 20-day SMA. RSI and stochastic had retreated slightly but yet are located within extreme overbought area. 

The pair is facing strong resistance at 126.25 – April’s 2016 high and in case bulls succeed to conquer it, next target is seen at 126.90.

EUR/JPY Undecided

EUR/JPY is about to end the trading day near the Friday’s closure point at 120.50. Though the pair was seen slightly elevated and marked daily high at 121.15, which is a 2-week high, was unable to hold above the bullish 100-day SMA on the daily chart. Meanwhile the 4 hour time frame is showing that price is now caught in range between the 20-day and 100-day SMA. RSI is slightly above the mid-lines and is loosing directional strength. Immediate support is located at 120.15 and in case of closing below it, the pair will be poised to extend the downside towards February’s lows around 119.40 - 119.70. Looking to the upside first resistance is seen at 120.75 (200-day SMA) and higher at 120.40 (February’s high).