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Euro Looks for Direction above 122.50 Yen

euro, yen

Looking at the headline EUR/JPY currency exchange rate and above daily MT 4 price action chart, the euro currency (EUR) is trading above the weekly low price point of 122.50 yen. This was the lowest price level for this Forex market since the middle of July.

Today’s economic calendar is not particularly busy. Germany will release their monthly Ifo business climate survey. Japan has no key economic data releases on their calendar for today or Friday.

The United States is publishing, from the Labor Department, weekly first time unemployment claims as well as weekly continuing claims jobs data. The U.S. will also release monthly existing home sales data as well as weekly natural gas storage levels.

The United Kingdom also has no economic data events on their calendar and Canada is not releasing any data. With the absence of economic data to produce price volatility with the euro currency or the Japanese yen, Forex traders will be watching Covid-19 (coronavirus) headlines closely.

Both currencies are sentiment linked but the euro is driven more by Brexit negotiations that are still stalled. The Japanese yen (JPY) is affected more by political and economic tensions between China and the United States.

Daily Euro Currency Technical Analysis (EUR/JPY)

Looking at the above price action chart, the EUR/JPY Forex market notes the first layer of technical support in play at the one hundred (100) day simple moving average. This minor technical support barrier lines up at 122.28 yen.

The next downside barrier comes into play at the longer term two hundred (200)  day simple moving average that lines up at 120.85 yen. Any sustained close below the 200 day SMA could bring the bears into the market.

On the upside, the first layer of technical resistance lines up at 123.20 yen. A daily close above this level opens the door to challenge the next layer of technical resistance in play at 123.55 yen. The next upside barrier then lines up at 123.82 yen.

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.

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euro, pound, british

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