Home Forex Market Analysis Forex Signals EUR/JPY Breaks Below Upward Channel at 124.850 – Quick Update on Sell...

EUR/JPY Breaks Below Upward Channel at 124.850 – Quick Update on Sell Signal! 

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Today in the European trading session, the EUR/JPY currency pair failed to stop its previous session losing streak and remain depressed around below the 124.50 marks. However, the bearish bias around the currency pair could be associated with upbeat Japan’s Machinery Orders data, underpinning the Japanese yen currency and contributing to the currency pair declines. Apart from this, Europe’s intensified coronavirus concerns undermined the shared currency and add further pessimism around the currency pair. On the contrary, the prevalent market risk-on sentiment tends to undermine the safe-haven Japanese yen, which becomes the key factor that helps the pair to limit its deeper losses. At this particular time, the EUR/JPY currency pair is currently trading at 124.38 and consolidating in the range between 124.32 – 125.08.

As we all well aware that the coronavirus resurgence in Europe is intensifying, which fueled the worries over the EUR economic recovery. As per the latest report, France has reported record-high new daily cases of approximately 27K during the recession. At the Spain front, Catalonia and Navarre’s regions will tighten restrictions on working and public gatherings after the continued rise in COVID-19 cases, which keeps the shard currency under pressure and contributed to the currency pair losses.

Across the pond, the market trading sentiment has been flashing mixed signals since the day started. Be it the American lawmakers’ failure to offer any positive announcement on the coronavirus (COVID-19) relief package or the on-going in the Sino-American tussle, not to forget the no-deal Brexit fears, these all factors have been weighing on the market risk tone. This, in turn, underpinned the safe-haven Japanese yen and dragged the currency pair further lower.

Across the pond, upbeat Japan’s Machinery Orders data also supported the Japanese yen currency, which keeps the currency pair under pressure. At the data front, the August month’s Machinery Orders recovered from -16.2% previous and -15.6% forecast to -15.2% YoY. On the other hand, the Producer Price Index (PPI) for September dropped below -0.5% expected and previous readings to -0.8%.

On the contrary, the market risk sentiment recently got lift by the positive reports suggesting that Trump had fully recovered from his bout with COVID-19. These hopes were further fueled after his physician Sean Conley stating that he is no longer an infection risk. This, in turn, boosted the market trading sentiment and helped the currency pair limit its deeper losses.


Daily Support and Resistance

S1 121.85

S2 122.64

S3 123.04

Pivot Point 123.43

R1 123.83

R2 124.22

R3 125

Technically, the EUR/JPY is trading at 124.450 level, having violated the upward channel supporting the pair at 124.800 level. For now, the EUR/JPY may find resistance at 124.800, and on the lower side, the pair may drop until 124.247. The leading indicators, such as MACD and RSI, are holding below 50, suggesting the odds of further selling bias among traders. Check out the forex trading signal below… 

Entry Price – Buy 124.439

Stop Loss – 124.839

Take Profit – 124.039

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

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