Can EURJPY Bears Maintain Control?

by at FXTM.
Tran Dai Phat
Tran Dai Phat

The EURJPY pair on the Daily Chart has been in a downtrend since 1 September 2020 when it registered the high price at 127.065, followed by a series of lower tops and lower bottoms. On 28 September 2020, the EURJPY pair recorded the low price of 122.369.

Technical Signals

When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms the pair’s downward path.

Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of financial instrument.

Additionally, the Relative Strength Index (RSI) Oscillator registers values below the fifty line which indicates negative sentiment. All three technical indicators are in agreement with regards to the downward bias of the pair.

Fibonacci

Three price targets may be calculated upon applying the Fibonacci tool to the price chart.

  • The first price target is estimated at 122.806 (161.8%).
  • The second price target is seen at 120.174 (261.8%).
  • The third price target is projected at 115.916 (423.6%).

While the first target has already been breached, the EURJPY pair is currently trading below the downtrend line. Although the market is currently seeing a countertrend, this might just be a temporary correction, as long-term sentiment remains bearish.

Of course, supply and demand as well as the crowd sentiment will determine the future course of the EURJPY pair.

EURJPY Daily Oct1st

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. 82% 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.

Sorry, there are no matching brokers for your criteria and location (United States). You can see the list without the location filter.

Go to the full list of brokers