After reaching the lower channel boundary circa 131.95 on Wednesday, EUR/JPY was dominated entirely by bulls. Along the way, the Euro dashed through the 100-, 55– and 200-hour SMAs and the weekly with no apparent resistance.
The 132.70 mark stopped the pair for several hours; however, a significant buying spree early in this session pushed the rate as high as the 133.50 mark. This massive upward movement has sent technical indicators in the overbought area.
This might weaken the pair for the upcoming trading hours. In case the monthly PP at 132.76 is breached, it is expected that the Euro would unsuccessfully test a support cluster formed by the 200– and 55-hour SMAs and the weekly PP in the 132.40 area.
The 132.70 mark stopped the pair for several hours; however, a significant buying spree early in this session pushed the rate as high as the 133.50 mark. This massive upward movement has sent technical indicators in the overbought area.
This might weaken the pair for the upcoming trading hours. In case the monthly PP at 132.76 is breached, it is expected that the Euro would unsuccessfully test a support cluster formed by the 200– and 55-hour SMAs and the weekly PP in the 132.40 area.
Comment:
EUR/JPY was driven by significant downside risks on Wednesday, thus resulting in a fall of 86 pips during the session. This momentum downside halted near the 132.80 mark early today, as it was pressured by the strong support of the monthly PP and the 100-hour SMA at 132.80 (the 55-day SMA is likewise located at this level).
Meanwhile, the weekly R1 and the 55-hour SMA circa 133.40 managed to reverse the rate back south. This suggests that the Euro might be stranded between these two barriers for most of the following session.
Given the fact that technical indicators are pointing to a strong buy signal, it is likely that the northern cluster surrenders first. Thus, the pair will have enough space to move up until the weekly PP and the monthly R1 at 134.05.
EUR/JPY was driven by significant downside risks on Wednesday, thus resulting in a fall of 86 pips during the session. This momentum downside halted near the 132.80 mark early today, as it was pressured by the strong support of the monthly PP and the 100-hour SMA at 132.80 (the 55-day SMA is likewise located at this level).
Meanwhile, the weekly R1 and the 55-hour SMA circa 133.40 managed to reverse the rate back south. This suggests that the Euro might be stranded between these two barriers for most of the following session.
Given the fact that technical indicators are pointing to a strong buy signal, it is likely that the northern cluster surrenders first. Thus, the pair will have enough space to move up until the weekly PP and the monthly R1 at 134.05.
Comment:
The common European currency remained stranded between the monthly PP and the weekly R1 in the 132.76/133.20 area during the last trading session. The former surrendered early on Friday, but it nevertheless remained nearby, as a further decline was restricted by the 200-hour SMA circa 132.55.
Apart from the channel up, the pair is likewise trading in a falling wedge. As the Euro was moving upwards prior to entering this pattern, the most probable exit point should be the upper wedge line. It is likely that this breakout occurs in the following hours.
Given that the upside is guarded by the 100– and 55-hour SMAs circa 133.08, the Euro could be reluctant to move away from the monthly PP by mid-Monday and thus trade near the psychological 133.00 mark at the time.
The common European currency remained stranded between the monthly PP and the weekly R1 in the 132.76/133.20 area during the last trading session. The former surrendered early on Friday, but it nevertheless remained nearby, as a further decline was restricted by the 200-hour SMA circa 132.55.
Apart from the channel up, the pair is likewise trading in a falling wedge. As the Euro was moving upwards prior to entering this pattern, the most probable exit point should be the upper wedge line. It is likely that this breakout occurs in the following hours.
Given that the upside is guarded by the 100– and 55-hour SMAs circa 133.08, the Euro could be reluctant to move away from the monthly PP by mid-Monday and thus trade near the psychological 133.00 mark at the time.
Comment:
The European market was shaken early on Monday, as news about the failure of the German Chancellor Angela Merkel to form a coalition caused a massive selling spree for Euro bears.
As a result, the given currency fell 78 pips within the first two hours of today down to its two-month low of 131.40—an area that is reinforced by the 100-day SMA. However, the rate had recovered all of its lost positions by mid-Monday and returned near the lower channel boundary.
Technical indicators flash bearish signals, suggesting that the major resistance cluster formed by the 200– and 55-hour SMAs is likely to limit the pair near the 132.60 mark. The bottom daily barrier should be the aforementioned two-month low.
Meanwhile, the ECB President is to testify on two occasions at 1400GMT and 1600GMT later today.
The European market was shaken early on Monday, as news about the failure of the German Chancellor Angela Merkel to form a coalition caused a massive selling spree for Euro bears.
As a result, the given currency fell 78 pips within the first two hours of today down to its two-month low of 131.40—an area that is reinforced by the 100-day SMA. However, the rate had recovered all of its lost positions by mid-Monday and returned near the lower channel boundary.
Technical indicators flash bearish signals, suggesting that the major resistance cluster formed by the 200– and 55-hour SMAs is likely to limit the pair near the 132.60 mark. The bottom daily barrier should be the aforementioned two-month low.
Meanwhile, the ECB President is to testify on two occasions at 1400GMT and 1600GMT later today.
Comment:
The market has introduced no major changes to the pair’s positioning within the last 24 hours. The Euro remained near the weekly PP against the Yen circa 132.15 during this time.
The 55-hour SMA started to affect the pair early on Tuesday, thus shifting its direction slightly southwards. It is likely that the rate remains near this moving average and the weekly PP for a few hours, but it should eventually allow for bears to overtake the market.
A possible downside target is the 131.40 area where the two-month low and the bottom channel boundary are located. The monthly S1 is also located nearby.
In case the bullish sentiment takes the upper hand, the combined resistance of the 200– and 100-hour SMAs at 132.55 is expected to restrict any further advances.
The market has introduced no major changes to the pair’s positioning within the last 24 hours. The Euro remained near the weekly PP against the Yen circa 132.15 during this time.
The 55-hour SMA started to affect the pair early on Tuesday, thus shifting its direction slightly southwards. It is likely that the rate remains near this moving average and the weekly PP for a few hours, but it should eventually allow for bears to overtake the market.
A possible downside target is the 131.40 area where the two-month low and the bottom channel boundary are located. The monthly S1 is also located nearby.
In case the bullish sentiment takes the upper hand, the combined resistance of the 200– and 100-hour SMAs at 132.55 is expected to restrict any further advances.
The common European currency strengthened substantially against the Yen on Tuesday, thus resulting in a 121-pip increase in price. As a result, the pair shot up to the 133.90 mark late in the evening and has remained between the weekly R2 and R1 in the 133.87/20 area.
This strong momentum north indicates that the Euro might still push up to the long-term resistance at 134.41. A reversal from this point (which is the likely option given the strength of the Euro) would confirm the existence of a triple top. It is a strongly bearish pattern that should sent the pair past the 131.55 mark within the next few weeks.
By and large, the aforementioned 131.40 area is unlikely to surrender today, even if bulls manage to push the rate even higher afterwards.
A fall could result in a test of the monthly PP at 132.76.