Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19
The Exponential Stocks Bull Market Explained - Video - 13th Mar 19
TSP Recession Indicator - Criss-Cross, Flip-Flop and Remembering 1966 - 13th Mar 19
Stock Investors Beware The Signs Of Recession / Deflation - 13th Mar 19
Is the Stock Market Still in a Bear Market? - 13th Mar 19
Stock Market Trend Analysis 2019 - 13th Mar 19
Gold Up-to-Date' COT Report: A Maddening Déjà Vu - 12th Mar 19
Save Fintech? Ban Short Selling. It's Not That Simple - 12th Mar 19
Palladium Blowup Could Expose Scam of Gold & Silver Futures - 12th Mar 19
Next Recession: Concentrating Future Losses & Bringing Them Forward In Time As Profits - 12th Mar 19
The Shift of the Philippine Peso Regime - 12th Mar 19
Theresa May BrExit Back Stab Deal Counting Down to Resignation, Tory Leadership Election - 12th Mar 19
Phase 1 of Stock Market Correction - 11th Mar 19
Long Awaited Stock Market Pullback has Finally Arrived - 11th Mar 19
US Presidential Cycle and the Stock Market - Video - 11th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - 11th Mar 19
Chinese Economic Data Shakes the Global Stock Markets - 11th Mar 19
The Fed Is Playing a Dangerous Game - 11th Mar 19
The Stock Market Has Called the Fed’s Bluff, What’s Next? - 11th Mar 19
Turkey Holiday Bazaar Extreme Jewelry Price Haggling - Fethiye Market - 11th Mar 19

Market Oracle FREE Newsletter

Stock and Finanacial Markets Trading Analysis Worth

USD/JPY and EUR/JPY Testing Significant Hurdles

Currencies / Forex Trading Aug 01, 2018 - 03:42 PM GMT

By: FXOpen


The weekly chart of USD/JPY and EUR/JPY indicates that both pairs are facing important resistance levels and they remain at a risk of a bearish reaction.

Key Points

  • The US Dollar is trading above the 110.00 support and the 50-week simple moving average.
  • USD/JPY is facing two significant bearish trend lines with resistance near 113.00 on the weekly chart.
  • EUR/JPY declined recently and settled below a key support at 131.60.
  • The pair remains at a risk of more losses towards the 128.00 and 127.00 supports.

USD/JPY Technical Analysis

The US Dollar formed a key support near the 104.60 level in March 2018 against the Japanese Yen. The USD/JPY pair climbed above the 106.00 and 108.00 resistance levels.

The pair also managed to move above the 110.00 resistance and the 50-week simple moving average. However, the upward move was capped by two significant bearish trend lines with current resistance near 113.00 on the weekly chart.

These trend lines prevented gains on many occasions during the past twelve months and they are currently stopping an upside break above 113.00.

The pair recently failed and dipped below the 23.6% Fib retracement level of the last wave from the 104.63 low to 113.17 high. On the positive note, the pair is still trading above the 50-week simple moving average and 110.00.

Should there be a break below the 50-week SMA, the pair could test the 50% Fib retracement level of the last wave from the 104.63 low to 113.17 high at 108.90. Below this, the pair will most likely drop towards a connecting bullish trend line on the same chart with support at 106.50.

On the flip side, if the pair breaks and settles above 113.00, it could open the doors for a larger uptrend. The next major resistances in the mentioned scenario are 115.00 and 116.50. Overall, the next move in USD/JPY depends whether the pair succeeds in clearing trend lines near 113.00.

EUR/JPY Technical Analysis

The Euro topped around the 137.50 level in January 2018 against the Japanese Yen. Later, the EUR/JPY pair declined and broke the 135.00 and 133.00 support levels.

During the decline, there was a break below a key bullish trend line with support at 134.40 on the weekly chart. The pair even settled below the 50-week SMA and traded towards 125.00. A low was formed at 124.60 and later the pair staged a recovery.

During the past few weeks, the pair climbed and traded above the 128.00 and 130.00 resistance levels. There was also a break above the 38.2% Fib retracement level of the last drop from the 137.50 high to 124.61 low.

However, the upside move was capped by the previous support (now resistance) at 131.60 and the 50-week SMA. Moreover, the 50% Fib retracement level of the last drop from the 137.50 high to 124.61 low also acted as a hurdle for more gains.

The pair declined once again and broke a contracting triangle support at 130.40. If the stated break is real, there are chances of more slides in EUR/JPY below the 130.00 level. Below this, the pair may perhaps revisit the 128.00 support area.

On the other hand, if the pair recovers above 130.80, it could revisit the 131.60 resistance and the 50-week SMA. To recover and move into a bullish zone, the pair must close above the 132.00 barrier and the 50-week SMA. If not, it may well continue to decline towards 128.00 and 127.00.

The market outlook is provided by FXOpen broker.

FXOpen - true ECN/STP Forex and cryptocurrency broker.

© 2018 Copyright FXOpen - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules