29.05.2023 08:25 PM
EUR/JPY: new leg higher expected

The EUR/JPY pair crashed in the short term, but the sell-off seems over. It's trading at 150.33 at the time of writing. After its strong growth, a short-term correction was natural. The Japanese Yen appreciated a little in the short term as the Yen Futures rebounded.

Tomorrow, the Japanese Unemployment Rate could drop to 2.7% from 2.8%, while Spanish Flash CPI is expected at 3.6%, far below the 4.1% growth in the previous reporting period. Furthermore, the Eurozone M3 Money Supply and Private Loans data could have an impact.

EUR/JPY Sell-Off Ended!

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As you can see on the H1 chart, the price was almost to reach the 150.05 and median line (ml). These represent strong downside obstacles. It has found support on the weekly pivot point of 150.17 and now tries to come back higher.

In my opinion, as long as it stays above the median line (ml), the bias remains bullish. A larger downside movement could be activated by a valid breakdown below this dynamic support.

EUR/JPY Outlook!

Testing and retesting the median line (ml) and 150.05, registering only false breakdowns below these levels should announce a new bullish momentum. This represents a new buying opportunity.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2023
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