Menu

Search

  |   Technicals

Menu

  |   Technicals

Search

FxWirePro: EUR/JPY extends break below 21-EMA, eyes 38.2% Fib at 126.69, stay short

  • EUR/JPY has resumed downside after brief consolidation, extends break below 21-EMA.
     
  • The major is trading 0.93% lower on the day, at 127.29 at the time of writing.
     
  • The single currency remains dented after dovish ECB taper, while JPY remains bid amid risk-off.
     
  • U.S. President Donald Trump threatened on Monday to impose a 10 percent tariff on $200 billion of Chinese goods taking the world’s two largest economies to the brink of a full-scale trade war.
     
  • We expect further weakness on bearish signals on technical indicators along with the above fundamental factors.
     
  • Next major bear target lies at 38.2% Fib at 126.69. Break below to see test of 125.25 (major trendline).
     
  • On the upside, 55-EMA is major resistance. Bearish invalidation only on break above.

Support levels - 127, 126.69 (38.2% Fib), 126, 125.25 (major trendline)

Resistance levels - 128, 128.45 (5-DMA), 128.82 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-Euro-nosedives-after-dovish-ECB-taper-could-extend-drop-further-good-to-short-upticks-in-EUR-JPY-1371359) has hit TP1.

Recommendation: Book partial profits at lows. Trail SL to 128.85. Hold for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -96.1189 (Bearish), while Hourly JPY Spot Index was at 166.665 (Bullish) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.