EUR/JPY could resume rebound
Fawad Razaqzada April 16, 2019 6:56 AM
The FX markets have been fairly quiet so far this week and price action on the whole has been range bound. Indeed, after last week’s rally, safe haven Japanese yen pairs have all pulled back a little at the start of this week, despite the fact global equity indices have marched on higher. Thus, if we are to see the re-emergence of a trend in FX, it will likely be in yen pairs pushing higher along with stocks. With the likes of the USD/JPY, EUR/JPY, AUD/JPY and CAD/JPY all pushing higher for 3 consecutive weeks, I wouldn’t be surprised if any of these pairs were to turn around now and push higher again.
Among the yen pairs, the EUR/JPY will be a good one to watch for further developments this week, ahead of the Eurozone PMI data on Thursday. Technically, this pair looks somewhat bullish after it broke above its short term bear trend and resistance around 125.45 to 125.70 last week, before stalling at 126.80. The 125.45-125.70 range is now the key support area that needs to be defended to keep the bullish trend intact. Meanwhile, any move above the 126.80 level is likely to trigger further technical buying, initially towards the 200-day moving average (127.32) or the long-term 61.8% Fibonacci retracement level (127.65).
Source: TradingView and FOREX.com
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.