EUR/JPY Up 5 Pips, in a Downtrend Over Past 30 Days; is Inching Close to 100 Day Average

EUR/JPY Price Recap

119.833 (USD) was the opening price of the day for EUR/JPY, resulting in yesterday being a day in which price moved up 5 pips 0.05% 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 10.77% from the day before — and down 39.47% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/JPY ranked 17th yesterday in terms of percentage price change. The price chart of EUR/JPY below illustrates.

EUR/JPY Technical Analysis

Notably, 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 100 day average, which is 58.9 pips away. 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 30 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 8 out of the past 14 days. And for candlestick traders, a special treat: there are doji and pin bar patterns 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 8 buy signals on our radar and 21 sell signals. This imputes a buy/sell ratio of 0.38, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a divergence technical pattern. Here’s a piece we found on tradingview.com that we thought you might enjoy.