- EUR/JPY was seen in the 158.93 - 158.70 range, trading relatively quiet.
- Indicators exhibit signs of bullish exhaustion.
- Fundamentals may favour the JPY in the next sessions.
In Wednesday’s session, the EUR/JPY consolidated Tuesday losses and traded in a narrow range after declining by 0.65% on Tuesday and clearing all Monday gains. At the beginning of the week, the cross jumped to a multi-year high of 159.90, it highest level since 2008, but the buyers are struggling to hold that momentum.
On the daily chart, there is a neutral to bearish technical outlook as the bulls are losing traction. The Relative Strength Index (RSI) turned flat in positive territory, while the Moving Average Convergence (MACD) displays lower green bars. Furthermore, the cross has continued side-ways trading since late July in the 154.00 - 160.00 range, with both parties struggling to make a move beyond those levels. However, on the broader scale, the pair is above the 20,100,200-day Simple Moving Average (SMA), highlighting the continued dominance of bulls.
That being said, the JPY could get additional momentum as higher Japanese government bond yields amid monetary policy tweak speculations could act as a catalyst and revive the buying momentum. On Thursday, the European Central Bank (ECB) announces its monetary policy decision which could also provide impetus to the pair.
Support levels: 158.50, 158.00, 157.00.
Resistance levels: 159.00, 159.50, 160.00.
EUR/JPY Daily Chart
-638338659974166768.png)
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds lower ground below 1.0300 as traders await US NFP
EUR/USD holds lower ground below 1.0300 in European trading hours on Friday. Concerns over US President-elect Trump's policies and hawkish Fed expectations favor the US Dollar ahead of the critical US Nonfarm Payrolls data release.
GBP/USD falls back below 1.2300, US NFP eyed
GBP/USD is falling back below 1.2300 in the European morning on Friday, failing to sustain the rebound. The pair remains vulnerable amid persistent US Dollat strength and the UK bond market turmoil. The focus now shifts to the US labor market data for fresh trading directives.
Gold price sticks to intraday gains near multi-week top; US NFP in focus
Gold price attracts buyers for the fourth straight day on Friday amid some haven flows. The Fed’s hawkish stance, elevated US bond yields and a bullish USD should cap gains. Traders might also opt to wait for the release of the key US NFP report later this Friday.
Nonfarm Payrolls forecast: US December job gains set to decline sharply from November
US Nonfarm Payrolls are expected to rise by 160K in December after jumping by 227K in November. US jobs data is set to rock the US Dollar after hawkish Fed Minutes published on Wednesday.
How to trade NFP, one of the most volatile events Premium
NFP is the acronym for Nonfarm Payrolls, arguably the most important economic data release in the world. The indicator, which provides a comprehensive snapshot of the health of the US labor market, is typically published on the first Friday of each month.
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.