Economics
EUR/JPY Technical: Bulls are in hesitant mode again as ECB looms
This is a follow-up analysis of our prior report, “EUR/JPY Technical: Bulls may have reached a key bearish reversal zone” published on 18 September…
This is a follow-up analysis of our prior report, “EUR/JPY Technical: Bulls may have reached a key bearish reversal zone” published on 18 September 2023. Click here for a recap.
The price actions of the EUR/JPY have shaped the expected minor slide toward the highlighted support of 155.90 as mentioned in our previous report. The cross pair printed an intraday low of 154.42 on 3 October 2023 before it reverted to a choppy up move to retest the 159.80 major resistance (31 August 2023 swing high & February/May 2008 congestion area) in the past three weeks.
The bears seem to be lurking around the corner
Fig 1: EUR/JPY medium-term trend as of 26 Oct 2023 (Source: TradingView, click to enlarge chart)
Fig 2: EUR/JPY minor short-term trend as of 26 Oct 2023 (Source: TradingView, click to enlarge chart)
Right now, the current key technical elements are showing potential signs of a bearish momentum resurgence at least in the short-term as ECB monetary policy decision looms.
Firstly, the daily RSI momentum indicator has staged a negative reaction from a parallel resistance at the 60 level on Tuesday, 24 October which suggests a lack of bullish momentum follow-through for the recent up move from the 3 October 2023 low of 154.42 (see figure 1).
Secondly, on the shorter time frame 1-hour chart, the price actions of the EUR/JPY have just staged a bearish breakdown from the minor ascending channel support in place since the 4 October 2023 low coupled with a bearish momentum reading from the 1-hour RSI as it retreated below 50 level and has not hit an extreme oversold level yet (see figure 2).
Watch the 158.95 key short-term pivotal resistance for a potential slide towards the next intermediate support zone at 157.10/156.80 and a break below 156.80 may a revisit of 155.80 next.
On the other hand, a clearance above 158.95 invalidates the bearish move for a probe on the 159.80 major resistance again.
Argentina Is One of the Most Regulated Countries in the World
In the coming days and weeks, we can expect further, far‐reaching reform proposals that will go through the Argentine congress.
Crypto, Crude, & Crap Stocks Rally As Yield Curve Steepens, Rate-Cut Hopes Soar
Crypto, Crude, & Crap Stocks Rally As Yield Curve Steepens, Rate-Cut Hopes Soar
A weird week of macro data – strong jobless claims but…
Fed Pivot: A Blend of Confidence and Folly
Fed Pivot: Charting a New Course in Economic Strategy Dec 22, 2023 Introduction In the dynamic world of economics, the Federal Reserve, the central bank…