- EUR/JPY bears are lining up to take on the daily support structure.
- The bears are rejecting the daily correction at a significant layer of resistance and confluence between structure and Fibos.
EUR/JPY's downside case is compelling as traders step away from the euro which is plagued by the coronavirus fears.
The yen is a safe haven play and the technicals in the cross are bearish from both a long-term and near term perspective.
The following is a top-down analysis that illustrates where the path of least resistance is for a downside continuation of the broader bear trend.
Daily chart
The path of least resistance is to the downside judging by the price action on the daily chart.
The price has corrected a significant portion of the latest daily impulse and the old support would be expected to continue to act as resistance.
The price is yet to break the 21-day EMA though.
That being said, the daily wick on the last daily bearish candlestick is compelling for a restest of the downside from lower time frames to fill in the wick.
1-hour chart
Meanwhile, from an hourly perspective, on a break of initial support, the bears will face the next layer of the support structure, which, however, is expected to give way to longer-term forces and reveal the daily chart's recent lows which will be the real test.
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
Gold sits at fresh record high above $3,300 as US Dollar wilts on trade woes
Gold price remains within a striking distance of new record highs above $3,300 on Wednesday. Persistent worries about the escalating US-China trade war and US recession fears revive brroad US Dollar downtrend, boosting the traditional safe-haven Gold ahead of Fed Powell's speech.
EUR/USD holds firm above 1.1350 amid renewed US Dollar weakness
EUR/USD is storngly bid above 1.1350 in European trading on Wednesday. The pair draws support from a fresh round of selling in the US Dollar amid persistent fears over US-China trade war and a lack of progress on EU-US trade talks. US consumer data and Powell speech are in focus.
GBP/USD hangs close to fresh 2025-high above 1.3250 after UK CPI data
GBP/USD holds its six-day winning streak and stays close to its highest level since October above 1.3250 in the European session on Wednesday. The data from the UK showed that the annual CPI inflation softened to 2.6% in March from 2.8% in February but had little impact on Pound Sterling.
BoC set to leave interest rate unchanged amid rising inflation and US trade war
All the attention is expected to be on the Bank of Canada this Wednesday as market experts widely anticipate the central bank to maintain its interest rate at 2.75%, halting seven consecutive interest rate cuts.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.