Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

EURJPY defending the positive sentiment on the neckline.

ByAlpari Research & Analysis
AuthorTomasz Wisniewski
Published 08/21/2017, 04:45 AM
Updated 05/14/2017, 06:45 AM

Risk OFF mode seen at the first half of the August is messing with the bullish trend on the EURJPY. JPY is gaining strength across the market, which on this pair, allowed to initiate a first stronger correction since the June. Technical situation shows that we may be just warming up and that there is a potential for much more from the bearish camp.


The pair is in the strong up trend since the July 2016 and the latest strong bullish wave started in April this year (blue line) and allowed the price to climb almost 1700 pips higher. Global trend to flee to save heaven assets allowed the price to create a mid-term reversal pattern in the past two months. We are talking about the Head and Shoulders pattern seen on a daily chart (yellow). On Friday, the price attacked the neckline (both a red dynamic support and a horizontal green area) but buyers somehow defended and managed to create a hammer with a body above those two supports.
That delays the downswing, at least for a bit but the beginning of the new week brings us a drop again so a second try may happen sooner than we think.


As long as we stay above the 23,6% the sentiment remains positive but a breakout here should immediately trigger a sell signal. The first potential target for the sellers should be the orange area around the 125.9 but in my opinion, they can go deeper - to the 50% Fibonacci around the 123. That is the level (green area), which was respected many times in the past, starting from the end of December.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.