Forex Marketz Daily Forex News – Fully Markets Update
Looking at the EUR/JPY currency exchange rate on the above daily MT 4 price action chart, the euro currency (EUR) is trading around 130.25 yen during the early Asian trade session on Tuesday.
The EUR/JPY Forex market is still trading within the framework of yesterday’s dragonfly Doji candlestick formation. This is a bullish signal for the euro currency against the safe haven Japanese yen.
The economic calendar is not very busy on Tuesday. Overnight into Wednesday, Japan will publish their monthly leading indicators. Spain will publish their monthly unemployment change and the euro area third largest economy, Italy, will release their monthly unemployment rate.
The European Union will publish their monthly Sentix consumer confidence survey and the United States will release their monthly JOLTS jobs openings from the Labor Department.
With a light economic calendar, Forex traders will pay attention to coronavirus pandemic (Covid-19) headlines out of the European Union and even China where new cases are rising. This could help bolster safe haven assets like Japan’s yen.
Daily Euro Currency Technical Analysis (EUR/JPY)
Looking at price action on the above EUR/JPY chart, the appearance of the dragonfly Doji candlestick formation along with a positive 14 day relative strength index (RSI) is good for the bulls.
The downward sloping trend line from 18 March at 130.30 is the first upside barrier in play. A daily close above this level opens the door for last month’s high price point at 130.67. At this point, traders should watch to see if the relative strength index turns overbought.
On the downside, if 130.67 hold, immediate support lines up at 131 yen. The next downside barrier lines up at Monday’s low price point at 129.83 with a rising trend line in play since mid-January at 128.90 coming into focus. The short-term 10 simple moving average at 129.50 is the next downside barrier to watch.
