EURJPY Technical Analysis: US/China Dialogue


This 26 March EURJPY Technical Analysis shows that the pair is trading on the front foot in Asia, tracking the improvement in the risk sentiment on reports the US and China are negotiating to improve the US access to Chinese markets.

26 March, GKFX – The S&P 500 futures are up 10 points or 0.38 percent, indicating a relief rally could be in the offing. Consequently, the Japanese Yen is being offered across the board.

Today’s Focus

The data calendar is light with just the German import price index (Feb), scheduled for release at 06:00 GMT. Meanwhile, Bank of Japan (BOJ) governor Kuroda will speak in the parliament later today. The FX markets will focus on whether the US and/or China will soften or harden their stance on trade.

The relief rally in the risk assets will likely gather traction if the US-China negotiations progress to avoid a trade war.

26 March EURJPY Technical Analysis

Currently, the pair is trading at a session high of 129.83, having clocked a low of 129.28 earlier today. A clear break above130.00 (5-day MA + psychological hurdle) would expose the descending 10-day MA located at 130.54. A close higher would signal a bottom is in place and may yield a rally to 131.73 (Mar. 20 high).

On the downside, breach of support at 129.61 (March 19 low) could yield a sell-off to 129.28 (session low) and 128.94 (previous day’s low).

Disclaimer

This article 26 March EURJPY Technical Analysis 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.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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