Recovery week so far in EUR/JPY. Last week saw price plunge down for a test of the 170 handle and that played right around the BoJ rate decision. The response to that, however, was clearly Yen-weakness as EUR/JPY jumped up to the 61.8% Fibonacci retracement of the prior sell-off.
More interesting, however, was how the pair was hammered around and just after the Friday NFP report.
That EUR/JPY weakness held through the weekly open, but it was again the 170.00 level that bulls came in to defend, and since then, buyers have been pushing a bullish sequence via short-term price action and the door remains open for continuation.
The next big test is that 61.8% retracement that held the bounce last week. That plots at 172.30 and above that is the 172.50 psychological level, so that resistance can be approached as a zone. If bulls can chew through that the recovery takes on another level of attraction and the door opens wider for a run up to 173.00 after which the 173.90 prior high is exposed as next resistance. - js
More interesting, however, was how the pair was hammered around and just after the Friday NFP report.
That EUR/JPY weakness held through the weekly open, but it was again the 170.00 level that bulls came in to defend, and since then, buyers have been pushing a bullish sequence via short-term price action and the door remains open for continuation.
The next big test is that 61.8% retracement that held the bounce last week. That plots at 172.30 and above that is the 172.50 psychological level, so that resistance can be approached as a zone. If bulls can chew through that the recovery takes on another level of attraction and the door opens wider for a run up to 173.00 after which the 173.90 prior high is exposed as next resistance. - js
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.