EUR/JPY Down 8 Pips On 4 Hour Chart, in a Downtrend Over Past 14 Days; Pin Bar Pattern Appearing on Chart

EUR/JPY 4 Hour Price Update

Updated June 23, 2020 01:11 PM GMT (09:11 AM EST)

A moment of silence, please, for the end of EUR/JPY’s 5 four-hour candle up streak; price ended the previous 4 hours down 8 pips (-0.07%) to finish the four-hour candle at a rate of 120.978. Compared to its peers in the Forex, EUR/JPY gave its buyers a return that ranked 28th in terms of percentage change since the previous 4 hours.

EUR/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

EUR/JPY is up 18 pips (0.15%) since yesterday (opening today near 120.551), marking the 3rd day in a row an increase has occurred. Relative to other instruments in the Forex asset class, EUR/JPY ranked 15th 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 EUR/JPY is now close to its 20, 50, 100 and 200 day moving averages, which may act as price barrier for the asset. 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 74.5 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. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed up. For additional context, note that price has gone up 6 out of the past 10 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

Of note is that traders in aggregate have opinions on EURJPY, with 27 buy signals on our radar and 9 sell signals. This imputes a buy/sell ratio of 3, which is bullish. As for the rationale, technical traders seem to be citing the appearance of fibonacci and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Once We see a clear retest and close above the @120.464, we will go long….The weekly, monthly and daily all show bullish reversals to the upside….Buying momentum is also off the charts, so lets go long.