EUR/JPY Down 150 Pips, Breaks Below 20 Day Average; Pin Bar Pattern Appearing on Chart

EUR/JPY Price Recap

The choppiness in the recent daily price action of EUR/JPY continues; to start today, it comes in at a price of 118.372 US dollars, down 150 pips (1.26%) since yesterday. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 6.74% from the day prior, and up 172.66% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/JPY ranked 30th yesterday in terms of percentage price change. Here is a price chart of EUR/JPY.

EUR/JPY Technical Analysis

Notably, EUR/JPY crossed below its 20 day moving average yesterday. 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 20 day average, which is 102.4 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. For additional context, note that price has gone down 17 out of the past 30 days. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

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 25 sell signals. This imputes a buy/sell ratio of 0.48, which is bearish. 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.

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