EUR/JPY Price Prediction: Down-trend in play, lower lows expected
Trending Articles- Iranian military drones targeted US Fifth Fleet in Bahrain in response to southern US strikes
- Gold Price Trend Forecast: US-Iran Peace Talks Drive Gold Rebound, Is the Gold Slump Over?
- Gold plummets below $4,200 as US‑Iran tensions spur hawkish rate bets ahead of US CPI
- SpaceX Listing Imminent. Funds Flood Into SpaceX On-Chain Tokens, Bitcoin Rebound Momentum May Be Weakened
- US May CPI Preview: Rising Inflation May Push Up Fed Rate Hike Expectations, How Will US Stocks, Dollar, Gold React?
- WTI steadies around $85.00 as Trump indicates potential Iran deal
EUR/JPY is pulling back within a downtrend that has unfolded since the start of November.
Lower lows are expected assuming a break below the November 22 low.
EUR/JPY establishes a descending sequence of peaks and troughs from the October 31 peak. It is now probably in a short-term downtrend and given it is a principle of technical analysis that trends have a tendency to extend themselves, the odds favor the pair continuing to lower lows.
The next target to the downside for EUR/JPY is the 158.11 September 30 swing low (red-dashed line). A break below 159.90 (November 22 low) would provide confirmation. The pair has pulled back to the 161.60s and this also provides them with an entry point that might carry less risk and more reward (unless the correction turns into a reversal).
A deeper sell-off could even take EUR/JPY down to 154.00 – 155.00, the August-September lows.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
