EUR/JPY Forex Technical Analysis for June 22, 2016


EUR/JPY Forex Technical Analysis for June 22, 2016

Forex Technical Analysis – The EUR/JPY pair initially tried to rally during the course of the session on Tuesday, but found the bearish pressure above to be far too strong for the buyers to continue going higher. With that, we ended up forming a bit of a shooting star and as a result it looks as if we are going to grind down to the 115 level. This is a market that’s very negative overall, and of course is very highly sensitive to risk appetite around the world, which of course is falling at this point in time.

In Other View point – EUR/JPY drops to 118.70, lowest since January 2013

The increasing selling pressure around the single currency is now sending EUR/JPY to test fresh lows in the 118.80 area.

EUR/JPY weaker on Bunds, risk aversion

The common currency met further downside pressure in response to declining yields in German Bunds, with the 10-year benchmark testing the 0% level.

The dominating risk aversion context continues to favours the Japanese safe haven, prompting market participants to ignore auspicious results from EMU’s Industrial Production during April and Employment Change in Q1.

EUR/JPY relevant levels

At the moment the cross is losing 1.18% at 118.71 and a breach of 116.42 (low Jan.16 2013) would expose 113.54 (low Jan.9 2013) and finally 105.93 (monthly low Dec.10 2012). On the other hand, the next up barrier lines up at 120.32 (high Jun.13) ahead of 121.81 (20-day sma) and then 122.74 (low Jun.7).

In Other View Point (Forex Technical Analysis Chart ) – EURJPY LONG: ABCD AND TRIANGLE

Forex Technical Analysis

EUR/JPY sidelined below 118.00

EUR/JPY is looking to extend its consolidative theme below the 118.00 handle amidst increasing cautiousness ahead of the EU-UK Referendum on Thursday.

EUR/JPY at the mercy of risk trends

The cross has managed to leave behind last week lows in the 115.40 area, although it has so far failed to sustain a breakout of the 118.00 handle, which continues to cap occasional bullish attempts.

Other than the UK referendum tomorrow, the next significant releases will be the advanced manufacturing PMIs in Japan and the euro area, all expected on Friday.

EUR/JPY relevant levels

At the moment the cross is retreating 0.12% at 117.66 facing the next support at 115.46 (2016 low Jun.16) followed by 113.54 (monthly low January 2013) and then 105.93 (monthly low December 2012). On the other hand, a breakout of 119.19 (high Jun.20) would expose 120.34 (20-day sma) and finally 122.32 (55-day sma).