EURJPY – Bears might be coming out of hiding

Justin Freeman

The EURJPY currency pair on the D1 time frame was in a prolonged uptrend until the 1st of June when a higher top was recorded at 134.125. After that, bears started coming out of hiding, and as a result, EURJPY lost its uphill momentum.

A closer look at the Momentum Oscillator revealed a negative divergence between point a and b, compared to the price at 132.528 and 134.125. This could have alerted technical traders that a potential technical reversal was in the making.

The market then broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator pierced through the zero baseline.

A possible critical support level was formed when a bottom was recorded on the 14th of June at 132.648. Bulls are currently trying to drive the market higher, but bears are in the works again with a possible resistance level and lower top formed on the 10th of June at 133.758.

If the EURJPY breaks through the critical support level at 132.648, three possible price targets can be projected. Attaching the Fibonacci tool to the bottom at 132.648 and dragging it to the top of the resistance level at 133.758, the following targets may be calculated. The first target can be estimated at 131.962 (161.8%). The second price target might be forecast at 130.852 (261.8%), and the third and final target can be anticipated at 129.056 (423.6%).

If the resistance level at 133.758 is broken, the above scenario is annulled.

As long as enough bears join the EURJPY currency pair and supply overcomes demand, bears will be able to gain more power.

fxtm eurjpy chart

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


Justin Freeman

Latest news

Forex vs Crypto: What’s Better For Beginner Traders?
The crypto and forex markets are two of the world’s most popular among investors and traders. Read more
Three Great Technical Analysis Tools for Forex Trading
You don’t have to be very technical minded to make use of technical analysis in your forex trading. Read more

Safest Forex Brokers 2024

Broker Info Best In Customer Satisfaction Score
#1 73% of retail CFD accounts lose money. Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#2 Blackbull LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#4 plus500 logo 80 april 2024* 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5
#5 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#6 Forex Broker eToro Logo76% of CFD traders lose money Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#7 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#8 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker

    Forex Fraud Certified Brokers

    AvaTrade logo
    eToro Logo
    FxPro logo
    plus500 logo 80 april 2024
    XM Logo
    BlackBull Logo Small
    FXTM Logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.