EURJPY Up 25 Pips On Hourly Chart, Moves Down For the 5th Day In A Row; Crosses 20 Day Moving Average

Hourly Update

(Last Updated September 9, 2020 15:15 GMT)

At the time of this writing, EURJPY’s rate is up 24.7 pips (0.2%) from the hour prior. It’s been a feast for bulls operating on an hourly timeframe, as EURJPY has now gone up 4 of the past 5 hours. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on EURJPY. Given that we see an uptrend on the 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. Most noteworthy in the world of moving averages on the hourly chart is that the 100 hour moving average has been crossed, with price now being above it. The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

EURJPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

EURJPY is down 22 pips (0.18%) since the day prior (opening today near 125.501), marking the 5th day in a row a decline has happened. Out of the 40 instruments in the Forex asset class, EURJPY ended up ranking 27th for the day in terms of price change. The price chart of EURJPY below illustrates.

EURJPY

EURJPY Technical Analysis

First things first: EURJPY crossed below its 20 day moving average yesterday. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. For additional context, note that price has gone down 10 out of the past 14 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on EURJPY, with 10 buy signals on our radar and 23 sell signals. This imputes a buy/sell ratio of 0.43, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a double top technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

🔸Price bounced at the Daily Resistance Zone….🔸 Will look for a lower timeframe bearish setup if the zone is broken….🔸 DAILY CHART ANALYSIS: https://www.tradingview.com/x/upwObn19/


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram