Trading news

Resistance And With Room To Fall

EURJPY At Resistance And With Room To Fall

EURJPY, Weekly

As EURUSD moved higher last week, EURJPY rallied very strongly and reached the February highs. Last week’s close was inside the weekly pivot candle from February this year, roughly the same area that was earlier defined by October 2014 pivot low. As reaction to previous pivot levels and today’s price action now proves this area has psychological significance. The nearest support and resistance levels are 131.30 and 136.85. The 50% Fibonacci level coincides roughly with the 131.30 support. This is quite far away from the current price and therefore suggests current levels are good for those looking for shorting opportunities. Earlier today EURUSD has been reacting lower from a resistance while JPY has been slightly stronger than its peers across the board. With EURJPY also trading lower from a resistance this should be a good time to be bearish on EUR and bullish on JPY.



On Friday EURJPY hit resistance just above 135.02 and turned lower. This resistance was created by a pivot candle from February 11th and now price is trading 0.49% below the close from Friday. Stochastics is overbought and about to roll over while the pair has been trading outside the Bollinger Bands and is now edging close to the upper 2 stdv band. A close below the band would be a further confirmation of bearish mood in EURJPY. The nearest daily support level is at 131.29 with the 50% Fibonacci level and 50 day SMA not that far behind at 130.75 and 130.32 respectively. Movements below 38.2% Fibonacci level at 131.81 should be monitored for momentum reversal signals.


EURJPY, 240 min

As the pair has moved lower the Stochastic Oscillator has declined to overbought levels. However price is now trading below 134.23, a level that used to be an intraday support and should now act as a resistance. Nearest intraday support level is at 132.46 where lower Bollinger Bands and an old channel high coincide. The next support area consists of April 6th pivotal resistance area between 130.40 and 131.29. Currently the 50 period SMA is also inside area.


The pair is overbought in higher timeframes and in resistance which indicates it’s time for it to correct lower. At the time of writing EUR is weak against all the major currencies while JPY is holding up against all the others but CAD. This combined with the technical weakness in EURJPY suggests that the trading opportunities in this pair are in the downside. EURUSD being weak at resistance is also supporting the bearish view. My target one in for short term trades is at 131.50 and target 2 at 130.40.

Trade these levels only if price action at the levels confirms my analysis. If you don’t know how to read price action, please join me to our free webinars and learn how to take your trading to the next level. Register here for FREE!


Janne Muta
Chief Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Monday, 04 May, 2015 / 10:20

Note: Company News is a promotional service of the Directory and the content isn't created by Finance Magnates.

Source :

Trading news


Stocks falter again, bruised dollar seeks to end losing streak

  Market mood sours again as China crackdowns, mixed earnings and [...]

Posted on Friday, 30 Jul, 2021 / 9:44 under


The resurgence of covid-19 cases, with the rapid spread of the Delta variant [...]

Posted on Thursday, 29 Jul, 2021 / 10:57 under

Eurozone Q2 GDP: The Recession Is Over

Tomorrow we await the official confirmation that Europe has exited the [...]

Posted on Thursday, 29 Jul, 2021 / 10:40 under