EUR/JPY: the pair continues falling within a downward channel

July 21, 2015

Current trend

The Euro remains under the pressure amid general public opposing mood in Greece and poor macroeconomic indicators from the eurozone. There are no important publications affecting the Euro this week.

Yesterday, negative data on the Producer Price index came out in Germany, which appeared worse than forecasts. Tomorrow, attention needs to be paid to All Industry Activity index and other important publications in Japan. On Thursday, the Consumer Confidence index for eurozone is due. On Friday, Markit PMI indices are out in Germany and France.

Therefore, in the medium-term the Euro continues falling.

Support and resistance

The pair EUR/JPY is trading within a downward channel. A local strengthening in the Euro allowed the pair to grow to the upper border of the channel but the fall is going to continue after.

In the medium-term, the aims are 130.50, 128.55. Key technical indicators confirm the downward movement.

On the daily chart, the pair reached the middle MA of Bollinger Bands. If the price breaks down this level, the pair continues falling towards 126.20 (April low).

Support levels: 134.20, 133.25, 132.00, 130.50, 128.60, 127.00, 126.20.

Resistance levels: 135.50, 135.85, 136.35, 137.20, 137.75, 138.10, 139.00, 140.00, 140.90.

Trading tips

Open short positions from the current levels with the target at 130.80 and stop-loss at 136.35.

Publication source
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