Based on Friday’s intraday EURJPY trade forecast, EURJPY recovered most of its loss and now looks to test 124.40 resistance in line with the Japanese stocks.
19 May, AtoZForex – Going from weekly to hourly time frames, Intraday EURJPY trade forecast suggests strong bearish pressure from the top. However, in line with the Japanese stocks EURJPY pair managed to push its way above 123.70 zone.
EUR/JPY bounced off 20 day SMA at 122.56
Based on yesterday’s price developments, EURJPY equilibrium was close to the 20 day SMA at 122.56 level. The 20 day SMA turned into daily support, however if we see a break below today’s daily low, we might be in for further lows.
Intraday EURJPY trade forecast fundamental outlook
The bullish push for the past 24 hours is due to a slight turnaround in risk conditions. There is a renewed uptick in treasury yields. Meanwhile, the Japanese Stock index Nikkei 225 is now at the neighborhood of 19,600 level. This supports Abenomics views.
But, don’t get too excited! We have the former FBI director James Comey’s congressional testimony which is likely to bring the uncertainty back to the market. This might be a historic event!
EURJPY Technical analysis
While weekly chart signals possible reversal or correction to the bearish side, daily chart is giving recovery hopes especially based on yesterday’s price developments. Though, my vision weighs more on the bearish side, I would not rule out a little extra bullish development. Thus, look for 124.60 – 124.90 zone. However, if the price breaks above this range, expect to see some 700 pips move upwards.
|WR = 124.3|
WS = 123.07
W100 = down = 124.36
W20 = flat = 120.80
– Previous possible reversal candle
– Current possible indecisive candle
|DR = 124.43|
DS = 122.89
D100 = flat = 120.80
D20 = up =122.87
Previous sword candle
|HR = 123.96|
HS = 123.31
H100 = flat = 124.37
H20 = up =123.54
|Possible buy order|
@ 123.97, SL@ 123.37, TP@ 124.41
Look for sell orders@
1- 124.70, SL@ 126.14, TP@ 122.22
2- 123.32, SL@ 123.96, TP@ 121.98
On the opposite side, if we see a break below the Asian session lows, there will be further bearish waves. Such break would only stall towards 121.96 level.