EUR/JPY traded in a consolidative manner today, staying between the 121.46 support and the resistance of 121.75. Although the pair continues to trade above the tentative upside support line drawn from the low of November 14th, the December 12th rally has distanced the rate from that line and thus, on the 13th, the pair has entered a downside corrective mode. Given that there is still decent space between the rate and the aforementioned upside line, we would expect the current correction to continue for a while more.

If the bears are strong enough to overcome the 121.46 barrier, we may see them driving the battle towards the 121.00 zone, which is near the inside swing high of December 2nd. If they are not willing to stop there, then a break lower may extend the retreat towards the 120.75 obstacle, marked by the inside swing high of December 10th, or even the pre-mentioned upside support line.

Taking a look at our short-term oscillators, we see that the RSI stands slightly below its 50 line and has just turned down, while the MACD, already below its trigger line, has just obtained a negative sign. Both indicators detect negative momentum and support the notion for this exchange rate to continue drifting south for a while more.

On the upside, we would like to see a strong rebound back above 122.05 before we start considering that the current corrective phase is over. Such a move may encourage the bulls to aim for the high of December 17th, at around 122.45, the break of which could allow extensions towards the 122.65 territory, marked by the high of December 13th.

EURJPY

 


 

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

 


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD retreats toward 1.0850 despite weak US employment data

EUR/USD retreats toward 1.0850 despite weak US employment data

EUR/USD loses its traction and declines toward 1.0850 after testing 1.0900 earlier in the session. Because Nonfarm Payrolls data for October missed the market expectation by a wide margin due to hurricanes and strikes, the US Dollar manages to hold its ground.

EUR/USD News
GBP/USD climbs above 1.2950, looks to end week little changed

GBP/USD climbs above 1.2950, looks to end week little changed

GBP/USD benefits from the improving risk mood and trades in positive territory above 1.2950 in the American session on Friday as markets ignore the weak labor market data from the US. The pair remains on track to end the week flat.

GBP/USD News
Gold clings to small gains near $2,750 after US data

Gold clings to small gains near $2,750 after US data

Gold clings to marginal recovery gains and trades slightly above $2,750. The 10-year US Treasury bond yield struggles to push higher after the dismal October jobs report and weaker-than-expected PMI data from the US, helping XAU/USD keep it footing.

Gold News
Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results

Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results

Bitcoin could experience a price pullback in the next few days ahead of the US presidential election, analysts say, an event that will be key to determining whether and how the crypto class will be regulated in the years to come.

Read more
Bank of Japan holds rates steady amid signs of modest GDP growth

Bank of Japan holds rates steady amid signs of modest GDP growth

Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Majors

Cryptocurrencies

Signatures