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FOREX: EURJPY Pulling Lower, Technical Resistance Remains Intact

FOREX
BulletMarketsForeign Exchange Bullets
  • Single currency weakness continues to be evident following Trump's post on Zelensky, reflective of the souring sentiment towards how the potential Russia/Ukraine ‘negotiations might progress. EURUSD continues to press towards 1.0400, placing weight on EURJPY (0.65%), which continues to hover near session lows as we approach the European close.
  • Overall, EURJPY has pulled back from its recent high, and resistance at 160.68, the 50-day EMA, remains intact. A stronger reversal south would refocus the attention on 155.61, the Feb 10 low and a bear trigger. Furthermore, a trendline drawn from the August 2022 lows currently intersects just above this level, bolstering the significance of this area of support.
  • Clearance would resume the downtrend, and signal scope for a deeper selloff towards 154.42-1.5323.
  • Recall that TD Securities have recommended a short at 160.00, targeting a move to 152.95. Their short-term valuations suggest EUR/JPY trades rich, their models indicate positioning is clean and TD see BoJ and ECB outlooks as favouring the JPY, with March and May BoJ meetings being live.
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  • Single currency weakness continues to be evident following Trump's post on Zelensky, reflective of the souring sentiment towards how the potential Russia/Ukraine ‘negotiations might progress. EURUSD continues to press towards 1.0400, placing weight on EURJPY (0.65%), which continues to hover near session lows as we approach the European close.
  • Overall, EURJPY has pulled back from its recent high, and resistance at 160.68, the 50-day EMA, remains intact. A stronger reversal south would refocus the attention on 155.61, the Feb 10 low and a bear trigger. Furthermore, a trendline drawn from the August 2022 lows currently intersects just above this level, bolstering the significance of this area of support.
  • Clearance would resume the downtrend, and signal scope for a deeper selloff towards 154.42-1.5323.
  • Recall that TD Securities have recommended a short at 160.00, targeting a move to 152.95. Their short-term valuations suggest EUR/JPY trades rich, their models indicate positioning is clean and TD see BoJ and ECB outlooks as favouring the JPY, with March and May BoJ meetings being live.
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