EUR/JPY upside being capped due to 5-day MA and 100-day MA bearish crossover. What does the daily chart show? Get updated on the 13 February EURJPY Technical Outlook.
13 February, GKFX – EUR/JPY is mildly bid in Asia but is having a tough time holding on to gains above the 133.59 (100-day moving average).
The daily chart shows a bearish crossover (short-term average cuts long-term average from above) between the 5-day MA and 100-day MA. The bear cross was last seen in March 2017 and was followed by a 600-pip sell-off.
Also, the struggle to see convincing gains above the 100-day MA shows the JPY bears are not impressed by the 400 point rally in the Dow index. However, the EUR/JPY one-month 25 delta risk reversals gauge does show a slight drop in the premium claimed by EUR puts over EUR calls (i.e. slight drop in demand for EUR puts – bearish bets).
Looking ahead, the cross remains at the mercy of the sentiment in the equity markets, given the light Eurozone data calendar.
13 February EURJPY Technical Outlook
The pair was last seen trading around 133.62 levels. A break below 133.43 (session low) would open up downside towards 132.90 (previous day’s low) and 131.98 (Friday’s doji candle low). On the other hand, a move above 134.13 (Jan. 30 low) could yield a rally to 134.57 (50-day MA) and 134.77 (10-day MA).
This article 13 February EURJPY Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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