EUR/JPY Up 51 Pips in Last 4 Hours, Eyes 20 Day Average; Pin Bar Pattern Appearing on Chart

EUR/JPY 4 Hour Price Update

Updated July 06, 2020 05:04 AM GMT (01:04 AM EST)

EUR/JPY is up 51 pips (0.42%) since the previous 4 hours (opening the current 4 hour candle near 121.513), marking the 2nd candle in a row an increase has occurred. EUR/JPY outperformed all 37 assets in the Forex asset class the previous 4 hours. Congrats to its holders!

EUR/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

EUR/JPY entered today at 120.841, down 5 pips (0.04%) from yesterday. Relative to other instruments in the Forex asset class, EUR/JPY ranked 24th yesterday in terms of percentage price change. Here is a price chart of EUR/JPY.

EUR/JPY Technical Analysis

Coming into today 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 20 day average, which is 30.4 pips away. It should be noted, though, the 20 day simple moving average turned upwards, which may be a bullish sign. 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 14 day horizon; over that time period, price has been moving up. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed down. For additional context, note that price has gone up 7 out of the past 14 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 14 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 1.08, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

We can identify two potential scenarios for price action in the near future:1.Price action breaks to the upside and out of this pattern….Look for the break and retest around 121.500 followed by strong bullish setups which we can enter on and target higher toward major resistance like 123.500 (The blue trade path)2.Bullish momentum dies off and price action falls out of this pattern….Look for a break and retest confirming a lower high around 120.500 and look to target major support like 119.500 (The orange trade path)