Investing.com - Financial Markets Worldwide

EUR/JPY: 7x Is Not A Charm

BySecond Skies
AuthorChris Capre
Published 03/22/2012, 02:58 AM
Updated 05/14/2017, 06:45 AM

After taking out the yearly highs and climbing for 6 days in a row, it turns out 7x is not a charm as the pair ran into sellers just 12pips shy of the Nov. 2011 swing highs at 111.54.  For the first time in almost a year, price action has formed its first bearish engulfing bar (outside bar) while being above the daily 20ema.  It also turns out this engulfing bar is also a pseudo pin bar as well adding strength to the upside rejection and trap.

Price sold off into the 109.90 prior yearly and swing highs.  Bears will have to break through this to add selling pressure on the pair.  We will look for a pullback and price action triggers into the 111.42 highs to possibly short this pair, looking for a return back to 109.90 and possibly a break down to the 108.15 level which is where the daily 20ema is parked for now.  Unless the bulls come back with a vigor, sellers will likely maintain short-term control of the price action as profit taking from stale longs will likely take place throughout the day with such a bearish close.
skies3
The Forex Market Today:
The Euro dollar ran into a two week high and also prior resistance level while the EURJPY ran into a 5-month peak against the JPY.  Combined selling on the two with worries about Spanish 10Y yields renewing Euro-Zone worries, and a cooling housing market in China all hurt the EURO today.

The other big loser on the day was the Australian dollar which fell 0.3% against the USD today.

Global Markets Today:
Stocks sold off today in medium selling after the US Housing data disappointed with US Home Sales dipping 0.9%.  The DOW ended the day down about 45pts down .34% while oil extended moderate gains to $107 a barrel. 

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.