EUR/JPY Time for Bears to Celebrate

EUR/JPY Technical Analysis

  • Looks like a roof top pattern
  • The break below the trendline is bearish
  • New lower low should come into play

  1. Order block zone
  2. Rally High
  3. Break below the trendline
  4. Target 1
  5. Target 2

The price is in downtrend. Seems like we are in risk off mode. During the 100% risk off sentiment:

1.Gold up

2.Commodities prices down

3.Equities down

4.Yen strengthens as a result

This happens because the Japs can get cheap credit, so they invest overseas heavily. When its risky, they bring the money back creating demand for Yen and vice versa, when its bullish Equities, they pump their money overseas, which means they sell Yen and buy foreign currency. At this point Yen is getting stronger. Expectation is that the pair should be moving towards 131.37 and 130.66 respectively.

For a look at all of today’s economic events, check out our economic calendar.

Cheers and safe trading,

Nenad

 

Published by

Nenad Kerkez

Nenad Kerkez is an analyst and trader who has been in the market since 2008 and works closely with Admiral Markets as their Senior Lecturer and Market Analyst. Nenad covers over 25 currencies on an intraday basis and has a Masters in economics. He also developed CAMMACD TM, a proprietary trading and analysis strategy wit ever powerful pre fact setups that you can read every day. Nenad is also a valuable presenter on various FX EXPO shows, where he always presents new and interesting ways how to trade price action and protect your own investments. Further, he is the co-founder and head of Elite Currensea Trading, an educational website for currency traders.