Home EURJPY Threatening An Important Support Area
Forex News Today: Daily Trading News

EURJPY Threatening An Important Support Area

The Euro was seen trading higher against the US dollar recently, but it has struggled to hold the ground against the Japanese yen. We need to see how the EURJPY performs in the coming session, as it is trading around critical support levels. There is no major market moving event scheduled in the London session. However, there is a critical release lined up during the next Asian session. The Japanese trade balance data will be published by the Customs office. Moreover, the bank lending data will also be published around the same time. These releases might impact the EURJPY pair in the short term.

please see chart attached ad post image

There is an important bearish trend line formed on the hourly chart of the EURJPY pair, which is acting as a resistance in the near term. However, the most important thing to note here is that the pair is currently testing the 50% fib retracement level of the last leg from the 139.97 low to 144.51 high. The pair has tested the mentioned fib level a couple of times, which is very crucial. There is a strong bearish sign emerging as the pair has now closed below the 100 hourly moving average. The pair as of writing again making an attempt to break the highlighted trend line. If it breaks it up, then more gains are possible moving ahead.

Alternatively, if the EURJPY pair moves lower and breaks the 50% fib support area, then it might head towards the 200 MA which also coincides with the 76.4% fib level.

Overall, one might consider selling with a break of the 50% fib level as long as it trades below the bearish trend line.

————————————-
Posted By Simon Ji of IKOFX