EUR/JPY Down 66 Pips, in a Downtrend Over Past 30 Days; Price Base in Formation Over Past 90 Days

EUR/JPY Price Recap

EUR/JPY is down 66 pips (0.55%) since yesterday (with its current price near 119.035), marking the 2nd day in a row a decrease has occurred. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 35.98% from the day prior, and up 20.31% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/JPY ranked 37th yesterday in terms of percentage price change. Below is a price chart of EUR/JPY.

EUR/JPY Technical Analysis

Notably, 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 100 day average, which is 141.2 pips away. 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. Also of note is that on a 90 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 30 days EUR/JPY’s price has gone up 15 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURJPY, with 6 buy signals on our radar and 18 sell signals. This imputes a buy/sell ratio of 0.33, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a triangle technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

EUR/JPY broke out of a triangle over the last several months and has now re-tested that triangle bottom which is now resistance. You can expect more downside throughout the year possibly.