EUR/JPY Makes Big Move Relative to Two Week Trend, Up 174 Pips; in a Downtrend Over Past 30 Days

EUR/JPY Price Recap

EUR/JPY enters today at 120.298 in US dollars, up 174 pips (1.47%) 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 3.39% from the day before — and down 3.94% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/JPY ranked 2nd yesterday in terms of percentage price change. Here is a price chart of EUR/JPY.

EUR/JPY Technical Analysis

First things first: EUR/JPY crossed above 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 200 day average, which is 10.7 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. In addition to the moving average crossover, EUR/JPY’s momentum/trend on a 14 day basis may be decelerating. Volatility for EUR/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. 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 6 out of the past 10 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURJPY, with 4 buy signals on our radar and 12 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 channel and double top technical patterns. Here’s a piece we found on tradingview.com that we thought you might enjoy.