The EURJPY hit a low of 155.06 but managed to regain momentum and climb back up to 156.60.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- The EUR/JPY found support at a low of 155.06 and then recovered to 156.60.
The pair currently trades last at 156.508.
The previous day high was 156.93 while the previous day low was 155.61. The daily 38.2% Fib levels comes at 156.43, expected to provide support. Similarly, the daily 61.8% fib level is at 156.12, expected to provide support.
Despite initial losses, the EUR/JPY pair managed to regain ground, climbing from a low of 155.06 to 156.60 and closing with mild losses. Moreover, weaker-than-expected figures from the US, UK and the Eurozone seem to be having a greater impact on the Yen as the USD/JPY rose to monthly highs. In addition, monetary policy divergence between the European Central Bank (ECB) and the Bank of Japan (BoJ) applies further selling pressure to the JPY.
In early June, Germany and the Eurozone witnessed a contraction in manufacturing sector activity at an increasing rate, as indicated by the declining HCOB Manufacturing PMI to 41 and 43.6, respectively. While HCOB Services PMIs remained above the expansion threshold of 50, they significantly retreated compared to May levels to 52.4 and 54.1.
In addition, weak results were seen in the US and the UK, which contributed to a negative market environment. That being said, global bond yields are declining, indicating higher demands for bonds, while stock indexes are retreating. In that sense, the German DAX (DAX) is trading with 0.99 % losses as well as the Japanese Nikkei Stock Average, which is seeing more than 1% losses.
Adding to the weakness of the Japanese Yen, soft inflation figures remind investors that the BoJ may maintain its dovish stance. The National Consumer Price Index and Core Inflation for May have fallen short of expectations, dropping to 3.2% YoY and 4.3%, respectively. Looking forwards, investors will eye the speeches of central bankers from the BoJ and ECB next Wednesday at the ECB Sintra Forum where they will look for clues regarding the next steps from both bank’s monetary polices.
Based on the daily and weekly chart, the EUR/JPY has a clear, more favourable outlook against the Yen. In both charts, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both in overbought conditions suggesting that the buyers have control while the pair trades above its main moving averages. However, a downward technical correction shouldn’t be taken off the table for the upcoming sessions.
Upcoming resistance for EUR/JPY is seen at the area 156.90 level, followed by the 157.50 zone and the psychological mark at 158.00. On the other hand, immediate support for the cross is seen at the 155.50 zone, followed by the 155.00 area and the 154.00 level.
Technical Levels: Supports and Resistances
EURJPY currently trading at 156.65 at the time of writing. Pair opened at 156.79 and is trading with a change of -0.09 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 156.65 |
| 1 | Today Daily Change | -0.14 |
| 2 | Today Daily Change % | -0.09 |
| 3 | Today daily open | 156.79 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 151.6, 50 SMA 149.68, 100 SMA @ 146.47 and 200 SMA @ 144.73.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 151.60 |
| 1 | Daily SMA50 | 149.68 |
| 2 | Daily SMA100 | 146.47 |
| 3 | Daily SMA200 | 144.73 |
The previous day high was 156.93 while the previous day low was 155.61. The daily 38.2% Fib levels comes at 156.43, expected to provide support. Similarly, the daily 61.8% fib level is at 156.12, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 155.96, 155.13, 154.64
- Pivot resistance is noted at 157.27, 157.76, 158.59
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 156.93 |
| Previous Daily Low | 155.61 |
| Previous Weekly High | 155.27 |
| Previous Weekly Low | 149.67 |
| Previous Monthly High | 151.62 |
| Previous Monthly Low | 146.14 |
| Daily Fibonacci 38.2% | 156.43 |
| Daily Fibonacci 61.8% | 156.12 |
| Daily Pivot Point S1 | 155.96 |
| Daily Pivot Point S2 | 155.13 |
| Daily Pivot Point S3 | 154.64 |
| Daily Pivot Point R1 | 157.27 |
| Daily Pivot Point R2 | 157.76 |
| Daily Pivot Point R3 | 158.59 |
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
