Home » Technical Analysis » Euro Currency continues to Trek Higher against the Yen

Euro Currency continues to Trek Higher against the Yen


Despite a sour mood in the global financial markets, the euro currency is retaining the upper hand against the safe haven Japanese yen. The EUR/JPY currency exchange rate is continuing its six days in a row of gains as we head into Wednesday. During the Asian trade session, this Forex market is challenging 130.45 yen.

On the economic calendar, overnight into Thursday, Japan is publishing monthly industrial production numbers as well as monthly retail sales data. Germany, on Wednesday, will release their monthly retail sales. The United Kingdom will feature Nationwide’s the housing price index (HPI). The United States is releasing weekly crude oil inventory numbers.

Also impacting the sentiment linked euro currency is a souring financial market sentiment. By midnight Thursday, the United States faces a possible government shutdown and debt default if the debt ceiling is not raised.

The President of the European Central Bank, Christine Lagarde, will be giving remarks as well as several other ECB members. Also giving remarks today, is the Chair of the U.S. Federal Reserve, Jerome Powell. Other members of the U.S. central bank are also speaking on Wednesday.

Daily Euro Currency Technical Analysis (EUR/JPY)

Looking at the above daily MT 4 price action chart, the euro is trading above the 50 and 200 day simple moving averages signaling possible upside potential for the EUR/JPY Forex market. The 100 day simple moving average lines up at 130.82 yen.

A daily close above the 100 day simple moving average opens the door to challenge the 13 July high price point at 131.08 yen. The next key psychological barrier lines up at 132 yen with the 1 July high coming into play at 132.43 yen.

On the downside, the 200 day simple moving average lines up at 129.70 yen. Forex traders should note that the 14 day relative strength index retains a positive bias above the mid-line at and is near 59.50.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

Check Also


Gold Futures look to Stay Above $1,800 per Ounce

0.0 00 The spot gold futures contract is trading back above $1,800 per ounce after …