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    Technical Analysis – EURJPY risks more downside

    EURJPY is capped just under the 200-day moving average. The tenkan-sen line is also acting as a barrier to the upside, so strong resistance lies at the key 137.00 level.

    Prior to Monday’s big drop, EURJPY was declining from 141.04. The decline paused after prices found support at the cloud on Monday and following a bounce from 133.75, the market has been consolidating. The flat tenkan-sen and kijun-sen lines suggest more sideways action.

    If prices fall below Monday’s low of 133.75 then the market will shift to bearish. RSI is below 50 so this supports the bearish bias. To the upside prices have several barriers to overcome before gaining upside momentum. These barriers include the 137.00 resistance as well as the tenkan-sen and kijun-sen lines. But breaking above these would open the path towards the June 4 high of 141.04.

    Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.


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