EUR/JPY at a critical price juncture

11 October, 2016

EUR/JPY has risen to bump up against major resistance just above 115.00 and on the underside of a key descending trend line extending back to the late January highs. The currency pair has been rising rather sharply since late September as the euro has generally been well-supported and the safe-haven yen has been in pullback mode on recently increased risk appetite in the markets.

Tuesday morning brings key economic data from Germany in the form of the German ZEW survey. This release is a leading indicator of economic sentiment in Germany, and can often result in moves for the euro. The past three months of survey results have been consistently more pessimistic than expected.

As it currently stands from a technical perspective, EUR/JPY is consolidating in a potentially bullish flag pattern on a short-term basis, but still within a longer-term downtrend as outlined by the noted descending trend line. Any breakout of the short-term flag pattern would also result in a breakout above the longer-term downtrend line.

More likely, however, the euro should continue to be weighed down due to the ongoing dovish stance of the European Central Bank, and the yen may very well continue to strengthen on near-future risk events after the current pullback plays out. In this scenario, EUR/JPY would retreat from the current resistance area and continue to fall in line with the downtrend that has been in place since mid-2015. In the event of such a retreat from resistance, the next major downside target is at the key 112.00 support level.


Source   Presented by FOREX.com
EURJPY: Sellers in control, a retrospective discussion2 Mar, 2020  

On February 17 a situation was deliberated where the EURJPY currency pair was in the early stage of a new downtrend...

EURJPY Daily: Sellers in control17 Feb, 2020  

The EURJPY currency pair, on the D1 time-frame, was in an uptrend until January 16 when a higher top was recorded at 122.872. Supply overwhelmed...

Yen Continues to Extend Gains10 Jan, 2018  

After yesterday’s surprise move by the Bank of Japan to reduce bond purchases, the Yen has continued its move against other currencies. GBPJPY...


Euro boosted EUR/JPY to fresh lows30 Oct, 2017  

Fresh selling pressure around the euro boosted EUR/JPY to fresh lows. The pair sharply fell on Thursday and broke through a bunch of level. Sellers dragged...

Abnormal EUR/JPY move6 Jun, 2017  

EUR/JPY ADX(14) has just crossed above the key level 50, emerging from the low 30 levels in the previous session...

EUR/JPY deflates from highs near 123.705 May, 2017  

After hitting fresh 4-month tops near 123.70 in early trade, EUR/JPY has returned to the 123.00 neighbourhood...


Dollar edges up above 111 yen24 Mar, 2017  

The dollar was slightly higher in Friday’s Asian session, halting a nine-day slide against the yen, as US Treasury yields rose. Markets received some clarity...

EURJPY testing resistance, remain bearish10 Mar, 2017  

We remain bearish with price testing our 121.23 resistance (Fibonacci retracement, major horizontal overlap resistance) for a push down to 119.70 support...

EURJPY remain bearish below major resistance6 Mar, 2017  

We turn bearish below 121.23 resistance (Fibonacci retracement, major horizontal overlap resistance) for a push down to 119.44 support (Fibonacci retracement, horizontal pullback support)...