Breaking News

Market Outlook: EUR/JPY Remains Under Pressure

By FinFXForexJun 17, 2014 04:25AM ET
Market Outlook: EUR/JPY Remains Under Pressure
By FinFX   |  Jun 17, 2014 04:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items


The euro continues to move in consolidative mode above fresh lows at1.35 zone, with near-term structure showing slight improvement, as fresh strength tested the first layer of resistances at 1.3577/85, 38.2% of 1.3676/1.3511 / former lower base / daily Tenkan-sen line. Improved near-term conditions still require sustained break and daily close above 1.36 barrier to exit the current range and signal stronger rebound towards 1.3676/88, 06 June lower top / 38.2% retracement of 1.3992/1.3501 descend, level that marks the first breakpoint. Otherwise, further sideways movements would be expected in case the price action stays capped under 1.36 handle, with downside risk to remain in play as overall picture is bearish. Loss of 1.35 base to open the downside break point at 1.3475, 03 Feb higher low / main bull-trendline off 1.2042 low.

Resistance: 1.3587; 1.3600; 1.3645; 1.3676
Support: 1.3555; 1.3529; 1.3511; 1.3501

EUR/USD Hour Chart
EUR/USD Hour Chart


The pair remains under pressure overall, with near-term price action trading in consolidative phase off fresh lows and near-term base at 137.70. Negative structure on the larger picture keeps risk of extension of the downtrend from 140.07 lower top towards key short-term support and higher low at 136.21, 04 Feb low. However, positive hourly and improving 4-hour studies, suggest that further recovery cannot be ruled out in the near-term, with break of strong 138.55/70 resistance zone, range tops / Fibonacci 38.2% of 140.07/137.70 / 200SMA, required to confirm base and trigger stronger recovery.

Resistance: 138.53; 138.66; 139.16; 139.37
Support: 138.00; 137.70; 137.00; 136.50

EUR/JPY Hour Chart
EUR/JPY Hour Chart


Cable remains supported and consolidates within narrow range, recent strength which eventually cracked 1.7000 barrier, on acceleration from 1.6736 higher low. Overall positive picture favors fresh phase higher, once the pair clearly breaks 1.70 barrier, with immediate target at 1.7041, Aug 2009 peak. However, extended consolidative action under 1.70 handle is seen likely near-term scenario, as condition on 4-hour chart are overbought. Previous peaks at 1.6917/19, along with psychological/ Fibonacci 38.2% retracement 1.69 support, are seen as ideal points to contain corrective dips.

Resistance: 1.7009; 1.7041; 1.7100; 1.7150
Support: 1.6950; 1.6919; 1.6900; 1.6844
GBP/USD Hour Chart
GBP/USD Hour Chart


Near-term price action extended pullback off fresh high at 102.78 below pivotal 102.10/00 support zone, to find temporary support at 101.59, near Fibonacci 61.8% of 100.81/102.78 upleg and 200SMA. Triangular consolidation is under way, with hourly studies improving but 4-hour picture still holding negative tone. Unless the price clears 112.12, current consolidation tops, which would allow for stronger bounce, risk of re-visiting 101.59/41 low and extension towards 101.00 and 101.81/74, would remain in play.

Resistance: 102.12; 102.41; 102.63; 102.78
Support: 101.70; 101.59; 101.41; 101.20
USD/JPY Hour Chart
USD/JPY Hour Chart


The pair lost traction and fell to 0.9349, previous low / Fibonacci 38.2% retracement of 0.09209/0.9437, after forming hourly Head and Shoulders pattern. This could be signal of more significant reversal in case the price slides below 0.9349 and attempts below 0.9313, daily cloud top psychological 0.930 support. Negative hourlies and 4-hour indicators attempting below the midlines, support such scenario. However, bullish daily tools see the action limited so far, as larger picture shows the price action entrenched within broader 0.9200/0.9437 range and still holding near-the upper range’s boundary.

Resistance: 0.9400; 0.9437; 0.9460; 0.9500
Support: 0.9349; 0.9323; 0.9300; 0.9261
AUD/USD Hour Chart
AUD/USD Hour Chart


The pair maintains negative tone as fresh weakness, following corrective attempt failure at 1.0872, continues to move lower and slid below psychological 1.08 support. As bears are in play on all timeframes, more downside attempts will be favored. Higher low of 21 May, also main bull-trendline, is immediate target, ahead of daily cloud base at 1.0720 and psychological 1.07 support. Oversold 4-hour studies, however, suggest a pause in current descend, with lower top at 1.0872 expected to ideally cap. Reversal confirmation requires break below1257, Fibonacci 61.8% and previous highs.

Resistance: 1.0872; 1.0900; 1.0933; 1.0978
Support: 1.0800; 1.0790; 1.0743; 1.0700
AUD/NZD Hour Chart
AUD/NZD Hour Chart


Spot Gold pulled back off fresh high at 1284 and accelerated correction after losing pivotal 1270 support. The price dipped to 1262 so far, 50% retracement of 1240/1284 rally, with oversold hourly studies suggesting a break in current descend. This level could be seen as good reversal point, as 4-hour structure is still positive and bounce through 1270/77 to confirm. However, caution is required as daily studies remain negative and reversal pattern is developing on a daily chart. Reversal confirmation requires break below1257, Fibonacci 61.8% and previous highs.

Resistance: 1268; 1272; 1284; 1288
Support: 1262; 1257; 1250; 1245
XAU/USD Hour Chart
XAU/USD Hour Chart

Market Outlook: EUR/JPY Remains Under Pressure

Related Articles

Market Outlook: EUR/JPY Remains Under Pressure

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
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?
Replace the attached chart with a new chart ?
Post 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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email