Market News & Analysis
EUR/JPY looks set to resume potential impulsive down move
Kelvin Wong October 7, 2019 5:44 PM
Short-term technical outlook on EUR/JPY
click to enlarge charts
Key Levels (1 to 3 days)
Intermediate resistance: 117.40
Pivot (key resistance): 117.70
Supports: 116.40/20 & 115.80/65
Next resistance: 118.50
Directional Bias (1 to 3 days)
After a trading range of 43 pips in the past 2 days since 03 Oct, the EUR/JPY cross pair is likely to resume its impulsive downleg sequence within a major downtrend phase in place since 01 Feb 2018 high of 136.96 to target the near-term supports at 116.40/20 and 115.80/65 in the first step as long as the 117.70 key short-term pivotal resistance is not surpassed.
However, a clearance with an hourly close above 117.70 invalidates the bearish scenario for another round of corrective rebound to retest the 24/27 Sep 2019 swing high at 118.50.
- Since its 03 Sep 2019 high of 119.82, EUR/JPY has been evolving within a minor descending channel with its upper boundary now acting as a resistance at 117.40.
- The daily RSI oscillator is now testing a significant ascending support at the 40 level where a break below revives the momentum-term downside momentum.
- The 117.70 key short-term resistance is defined by the former minor range support from 23 Sep/01 Oct 2019 and the 23.6% Fibonacci retracement of the on-going slide from 03 Sep high to 03 Oct 2019 low.
- The 115.80/65 significant near-term support is defined by the 03 Sep 2019 swing low, the lower boundary of the minor descending channel and the 1.236 Fibonacci expansion of the slide from 03 Sep high to 23 Sep low projected from 27 Sep 2019 high.
Charts are from eSignal
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.