EUR/JPY follows trend lower ahead of ECB

20 October, 2016

EUR/JPY extended its recent fall on Wednesday as the key currency pair dropped in anticipation of Thursday’s monetary policy decision and press conference from the European Central Bank (ECB). Major clues that traders will be looking and listening for will be if and when the ECB may begin to gradually taper its extensive bond purchasing program, as well as whether quantitative easing may be extended beyond the currently planned end date in March of 2017.

EUR/JPY’s drop on Wednesday was not only due to ECB-driven pressure on the euro, but also by a surge in the safe-haven Japanese yen, which regained some strength amid financial markets that remain buoyant but have become increasingly wary ahead of major upcoming risk events.

For the past two weeks, EUR/JPY has retreated sharply from a key descending trend line extending back to the late January highs. This drop corresponds with the long-term trend for the currency pair, although the past few months since June’s Brexit-driven plunge to multi-year lows has essentially seen a sideways trading range.

As key risk events on the horizon, including Thursday’s ECB statement and conference, continue to impact both the euro and yen, the currency pair could quickly find further reason to extend its long-prevailing downtrend. With any further retreat from the noted downtrend resistance line, the next major bearish target is at the 112.00 support level, followed further to the downside by the 111.00 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)...