Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

EUR/JPY Hovers Near Key Support

By Axiory (Tomasz Wisniewski)ForexAug 02, 2022 10:13AM ET
www.investing.com/analysis/eurjpy-hovers-near-key-support-200627960
EUR/JPY Hovers Near Key Support
By Axiory (Tomasz Wisniewski)   |  Aug 02, 2022 10:13AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The second half of the European session brings us slightly higher volatility because Nancy Pelosi is on her way to Taiwan. China considers this a hostile move and has significantly increased its military presence in the region. This should typically trigger a risk-off mode, but the market's reaction is somehow divided.

For example, gold is climbing higher, representing old-school risk-off mode and a flee towards safe-havens.

On the other hand, indices also look bullish, with DAX pushing towards daily highs. For indices traders, we’re guessing the play will be as follows: If nothing happens, it’s better to hold long as the surge is highly probable. And if something is about to happen, who needs a stock exchange during World War III?

In this analysis, we’ll focus on EUR/JPY. This pair is in a fascinating place and, by having yen in it, can participate in a relief rally if China and the US play it cool.

EUR/JPY is currently at a crucial support at 133.8 (green). This was a strong support in May and resistance in February, October, and May 2021. This area is also 50% Fibonacci on the most recent uptrend. It looks like a great place to stop or at least pause the correction.

Worth noticing is that the recent strength of the yen seems overwhelming. The price dropped for four days straight and a few weeks before that. After that steep decline, it’s normal to have at least a minor correction, and the place for that is currently perfect. Any bullish price action here, for example, a long tail or double bottom, will be an invitation to buy, and that’s our base scenario here.

EUR/JPY daily chart.
EUR/JPY daily chart.

EUR/JPY Hovers Near Key Support
 

Related Articles

Al Brooks
EUR/USD: Profit Taking At 2017 Low By Al Brooks - Aug 15, 2022

The EUR/USD is testing the middle of the July tight trading range following a selloff of the 2017 low. This is profit taking from 2017 low, and the pullback is deeper than the...

EUR/JPY Hovers Near Key Support

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email