EUR/JPY Down 14 Pips, in a Downtrend Over Past 30 Days; Pin Bar Pattern Appearing on Chart

EUR/JPY Price Recap

119.697 (USD) was the opening price of the day for EUR/JPY, resulting in yesterday being a day in which price moved down 14 pips 0.11% from the day prior. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 0.42% from the day before — and down 33.43% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/JPY ranked 24th yesterday in terms of percentage price change. Let’s take a look at price chart of EUR/JPY.

EUR/JPY Technical Analysis

The first thing we should note is that the current price of EUR/JPY is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 100 day average, which is 74 pips away. Volatility for EUR/JPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 8 out of the past 14 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURJPY, with 12 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 0.92, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Price currently retesting trendline (H&S neckline), already confirmed with 3 previous touches4 Hourly candles are looking very well bullish. Previous low with engulfing bull candle. 5 minutes TL confirmed with 3 touches and retested 3 times.I’m expecting price to retest daily TL at 122