EUR/JPY Price Prediction: November bear trend unfolds
|- EUR/JPY is declining in a short-term downtrend which started in November.
- The pair is likely to continue lower given technical analysis theory.
EUR/JPY staircases down from its Halloween peak as it unfolds in a short-term downtrend during November. The odds favor an extension lower given the technical analysis theory that “the trend is your friend”.
EUR/JPY Daily Chart
The next downside target is at the 158.11 September 30 swing low. A break below the 159.90
low of the day would provide confirmation. Alternatively traders might look at a lower timeframe chart such as the 1-hour for a pullback – perhaps a three-wave ABC – to provide a lower risk entry-point.
The Relative Strength Index (RSI) momentum indicator is flirting with the oversold zone below 30. If it closes below 30 the pair will be considered oversold and short holders are advised not to add to their positions.
A deeper sell-off could even take EUR/JPY down to 154.00 – 155.00 August-September lows.
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.