EUR/JPY Greater Decline Towards ¥130.00 May Be Nearing
With USD/JPY trading up towards its former trendline support and EUR/USD's bear flag still biased lower, one pair that should draw interest in the coming days is EUR/JPY.
EUR/JPY lost the ¥133.10/50 support region of its consolidation triangle (tests of support came in May, July, September, and October) on October 27, after the ECB's shift in policy. With price having thus treated the ¥133.10/50 region as resistance since October 27, it appears an exit from the triangle to the downside is developing.
The bearish momentum profile on the EUR/JPY daily chart is improving. Price remains below its daily 8- and 21-EMAs, and both indicators, Slow Stochastics and MACD, have recently made moves into oversold/bearish territory; Stochastics have been oversold since October 27; and MACD has been diverging negatively since the ECB meeting on October 22.
EUR/JPY lost the ¥133.10/50 support region of its consolidation triangle (tests of support came in May, July, September, and October) on October 27, after the ECB's shift in policy. With price having thus treated the ¥133.10/50 region as resistance since October 27, it appears an exit from the triangle to the downside is developing.
The bearish momentum profile on the EUR/JPY daily chart is improving. Price remains below its daily 8- and 21-EMAs, and both indicators, Slow Stochastics and MACD, have recently made moves into oversold/bearish territory; Stochastics have been oversold since October 27; and MACD has been diverging negatively since the ECB meeting on October 22.