EUR/JPY Down 31 Pips Over Past 4 Hours; Moves Up For the 2nd Day In A Row

EUR/JPY 4 Hour Price Update

Updated July 09, 2020 09:18 AM GMT (05:18 AM EST)

The choppiness in the recent four-hour candle price action of EUR/JPY continues; to start the current 4 hour candle, it came in at a price of 121.558, down 31 pips (0.25%) since the previous 4 hours. Relative to other instruments in the Forex asset class, EUR/JPY ranked 31st the previous 4 hours in terms of percentage price change.

EUR/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

EUR/JPY is up 13 pips (0.11%) since the day prior (opening today near 121.648), marking the 2nd day in a row an increase has occurred. Relative to other instruments in the Forex asset class, EUR/JPY ranked 5th the day prior 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 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 102.9 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. The clearest trend exists on the 14 day timeframe, which shows price moving up over that time. Or to simplify this another way, note that out of the past 10 days EUR/JPY’s price has gone up 6 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURJPY, with 15 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 1.88, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

FX:EURJPY EURJPY had broke out of the downward channel, had a surge upward following the trendline, retraced back to the 0.618 fib level, and is now on its way up to the strong resistance at 122.111Entry @ 121.646SL @ 121.368TP1 @ 121.855TP2 @ 122.087