EURJPY Up 9 Pips On Hourly Chart, Sentiment Strongly Favors Sellers; Pin Bar Pattern Appearing on Chart

Hourly Update

(Last Updated September 18, 2020 23:15 GMT)

Currently, EURJPY’s rate is up 9.2 pips (0.07%) 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 20 hour timeframe. Regarding moving averages, it should first be noted that price has crossed the 20 and 50 hour moving averages, resulting in them with price now being above them. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

EURJPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

After 3 down days, EURJPY snaps its streak, rising 10 pips (0.08%) over the past day to close at an exchange rate of 124.094. Compared to its peers in the Forex, EURJPY gave its buyers a return that ranked 17th in terms of percentage change since the day prior. Below is a price chart of EURJPY.

EURJPY

EURJPY Technical Analysis

Notably, EURJPY is now close to its 20, 50 and 100 day moving averages, which may act as price barrier for the asset. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. It should be noted, though, that a trend in the opposite direction, going up, exists on the 90 day timeframe. For additional context, note that price has gone down 9 out of the past 14 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

Of note is that traders in aggregate have opinions on EURJPY, with 3 buy signals on our radar and 27 sell signals. This imputes a buy/sell ratio of 0.11, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

eliott waveschanneldouble channel not a swing trade at all, but surely 500-800 pips easy.


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