- EUR/JPY remains on back foot at weekly low, lacks momentum of late.
- Clear break of 50-SMA, U-turn from ascending trend line and bearish MACD signals lure sellers.
- Retreat in yields, firmer Japan inflation add strength to the pullback moves.
- Seven-week-old previous resistance line prods cross-currency sellers ahead of 200-SMA support.
EUR/JPY holds lower ground at the intraday bottom of around 158.20 heading into Friday’s European session. In doing so, the cross-currency pair takes clues from the recent pullback in the Treasury bond yields, as well as upbeat prints of Japan’s inflation data, amid a sluggish trading day.
However, the pair’s clear U-turn from a three-week-old rising trend line and the bearish MACD signals, as well as a downside break of the 50-SMA, gain major attention to keep the sellers hopeful.
It’s worth noting that the previous resistance line from late June restricts the immediate downside of the EUR/JPY pair to around 157.60.
Following that, the 200-SMA level surrounding 156.55 will act as the final defense of the EUR/JPY buyers.
In a case where the quote remains bearish past 156.55, multiple supports around 155.50 and 153.40 may prod the sellers before directing them to the previous monthly low of around 151.40.
On the contrary, a clear upside break of the 50-SMA level of 158.45 becomes necessary for the EUR/JPY buyer’s return.
Even so, an ascending trend line from July 21, close to 159.55, quickly followed by the 160.00 round figure, will challenge the EUR/JPY bulls afterward.
EUR/JPY: Four-hour chart
Trend: Further downside expected
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
Australian Dollar sees green as Greenback softens after eventful Wednesday
In Wednesday's session, the AUD/USD rose to 0.6480 as the US Dollar remained weak following the release of high-tier economic data. This comes despite Wednesday's publication of subdued Australian Consumer Price Index (CPI) inflation figures, which had previously limited the Aussie's rise.
EUR/USD need to clear 1.0600 to allow for further advances
The strong sell off in the Greenback encouraged EUR/USD to set aside the previous day’s pullback and refocus on a potential visit to the key barrier at 1.0600 the figure ahead of key data releases in the euro area later in the week.
Gold eases from daily highs as bears seize control
Gold remains on the positive foot near $2,640 per troy ounce, as US inflation data matched initial estimates in October, while US yields display a negative performance across the curve.
Ethereum Price Forecast: ETH surges 9% with increased capital inflows, bulls set sights on $4,522
Ethereum (ETH) rallied 9% on Wednesday following increased capital inflows into ETH ETFs and a major uptick in its open interest and futures premium. If the bullish momentum sustains, ETH could overcome its yearly high resistance of $4,093 and rally to $4,522.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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.