EUR/JPY Hovers Near the Lower End Of A Range
JFD Team | Dec 06, 2018 07:04AM ET
EUR/JPY traded lower on Thursday, after it hit resistance fractionally above the 128.40 barrier, marked by the inside swing low of the 30th of November, on Wednesday. That said, the slide was stopped once again by the 127.65 barrier, which is the lower end of the sideways range that’s been containing the price action since the 9th of November. Bearing in mind that the pair continues to trade within that range, we will adopt a neutral stance for now.
However, given that the rate is also trading near the lower end of the range, we see more chances for a downside exit rather than an upside one. If the bears prove strong enough to overcome the 127.65 hurdle soon, then we may see them driving the battle towards our next support of 127.25, defined by the low of the 29th of October. Another dip below 127.25 could carry more bearish implications, perhaps opening the way for the low of the 26th of that month, at around 126.65.
Shifting attention to our short-term oscillators, we see that the RSI, already below 50, has turned down, while the MACD lies within its negative territory and has just touched its toe below its trigger line. These indicators detect negative momentum and support our view that a downside exit out of the range is more likely than an upside one.
Now, in case we see a rebound above 128.40, we would take it as a signal that traders want to keep the pair within the range for a while more. We could then see a recovery towards the 129.05 level, the break of which could aim for the upper bound of the sideways range, at around 129.30.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.