Euro - Japanese Yen (EUR/JPY)

 

Daily Chart of EUR/JPY:

EUR/JPY Analysis and Outlook

Euro - Japanese Yen (EUR/JPY Analysis)

(Please refer daily currency charts and not short-term charts e.g. hourly charts. All technical analysis indicators for the weekly EUR/JPY outlook are based on the daily forex charts and in some cases 4-hourly charts. The trading strategies and forecast is based on the technical and fundamental outlook.)

 

Euro - Japanese Yen (EUR/JPY) Forecast:

 

Previous Outlook of EUR/JPY:

“2 Weeks Back: The weekly MACD stays above the signal line very bullishly, while the daily MACD has moved below the signal line. This also indicates that some downward consolidation may take place while bullish sentiments continue to hold. Any break above 107.95 should bring further gains first towards the resistance near 108.65 (50% retracement of the downward move during April 10, 2011 and July 22, 2012) and then possibly towards 109.20 or above. On the upside any sustained price action above 109.20 should target 110.00 psychological level.”

EUR/JPY Outlook For This Week:

Please check the relative strengths of recent economic releases and technical indications at following links as the base of this week's forecast of EUR/JPY. We recommend to check the economic strength meter on Fundamental Outlook page.
EUR/JPY Fundamental OutlookEUR/JPY Technical Outlook

 

Euro-Japanese Yen (EUR/JPY) went as high as 112.50 and then went into a volatile sideways mode over 110.62. The weekly closing was at 111.04.

The support over 110.60 indicates that the support of the psychological 110.00 is in play and the underlying bullish sentiments for the near-term remain in place. However, the wide gap between the highs and the opening prices of the last 3 trading days' red candles make us expect some further downward consolidation initially. If resistance near 111.75/111.80 holds then on the downside any decisive break below 110.60 should take EUR/JPY towards a minor support near 110.40. Any break and sustained price action below 110.40 should bring further consolidation towards 109.93 and then possibly towards the support zone of 109.15/109.25. This support zone is derived from the combination of 22-day EMA and Daily Ichimoku cloud.

With the mentioned supports holding, any break above 112.50 should take EUR/JPY towards 114.15/114.17 resistance of July 17th. This is critical as the psychological resistive effect of 115.00 will start coming into the picture here. However any sustained price action above 114.20 should target a test of 115.00 and any decisive break over this should target 116.60. This resistance is derived mainly from the price action during May to July 2011.

EUR/JPY Trading Strategies:

As mentioned above that though overall we are expecting further upward gains but there are possibilities for some consolidation. We would be looking forward to buying at the support levels mentioned but with tight stop-loss levels. Any short-selling position at current level would not have a stop-loss above 111.82.

(For short term Forex trades, please refer to daily technical analysis for US Dollar/Swiss Franc at EUR/JPYF Analysis. You may also share and check any real time EUR/JPY Trades in the Forex Forum and also the current EURJPY market sentiments.

There can also be some news or some indications from technical indicators or chart patters which may suggest some major moves. Please check and share such observations about about EUR-JPY and other currency pairs in the Forex Forum Alerts.

Important tags for outlook posted in the Forex blog: EUR/JPY, EUR/JPY Analysis, EUR/JPY Outlook, EUR/JPY Support and Resistance, EUR/JPY Alert.

You may also check EUR/JPY Correlation with other currency majors.

EUR/JPY Interest Rate Comparison
(For Carry Trade)
EUR interest rate
0.75%
JPY interest rate
0.10%
EUR/JPY interest rate comparision
0.65%

 

 

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