Earlier, we wrote that the euro was showing relative strength across the board today. Although the EUR/USD’s rally faltered as the stronger US GDP data underpinned the dollar, other euro crosses remained generally supported in this first half of the North American session. One interesting euro pair to watch for further developments in the Asian session overnight is the risk-sensitive EUR/JPY pair, which has rallied along with equity prices.
As a result of today’s rally, the EUR/JPY’s near-term technical picture has turned more bullish. Here are some key technical observations for this pair:
- Moved further above the 2018 low of 124.62 (bullish)
- New high for the year at 126.90 today (bullish)
- Poked above January’s bullish hammer monthly candle at 126.74 (bullish)
- Long-term lower highs still intact (bearish)
- Still below 200-day moving average (bearish)
- 200-day motiving average slope negative (bearish)
- Key short-term potential support levels:
- 126.30ish – old resistance pre-breakout
- 125.70ish – point of origin of bullish breakout on H1 time frame
- Key short-term potential resistance levels
- 127.20/25 – last daily support pre-breakdown
- 128.00/15 – 50% retracement and 200-day average confluence
Overall, price action still looks bullish on the EUR/JPY and we continue to expect the dips to be supported and resistances to give way. This bullish technical directional bias would remain valid until such a time that price breaks a prior low or forms a distinct reversal pattern at higher levels first.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.