EUR/JPY is sporting a verrry interesting reversal candlestick on the every day time-frame.
Is the pair able to return to its longer-term trend?
We’re EUR/JPY’s every day chart today!
EUR/JPY Every day Forex Chart by TradingView
In case you missed it, the yen has been making pips rain currently, possibly resulting from a combo of Japanese officials intervening within the FX markets and traders unwinding their JPY carry trades.
The euro isn’t doing badly either, losing pips against GBP, CHF, and JPY but additionally trading within the green against the remaining of its major counterparts in July as political uncertainties within the region eased and European Central Bank (ECB) members underscored their “prudent” approach to cutting rates.
Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. Should you haven’t yet done your fundie homework on the euro and the Japanese yen, then it’s time to envision out the economic calendar and stay updated on every day fundamental news!
EUR/JPY, which hit recent 2024 highs near 175.40, turned lower and is now trading closer to the 166.83 area.
What caught our attention today is a Hammer poppin’ up on EUR/JPY’s every day chart. Specifically, a Hammer poppin’ up around a possible support zone.
That’s right! After a pointy downswing, EUR/JPY showed a bullish reversal candlestick near the 38.2% – 50.0% Fibonacci retracement levels and between the 100 and 200 SMAs.
Does this mean EUR/JPY is able to extend its longer-term uptrend?
Look out for bullish candlesticks above the 166.00 psychological handle, which could attract enough buyers to push EUR/JPY back as much as the 168.00, 170.00, or 172.00 previous areas of interest.
After all, EUR/JPY bears could be taking a breather. If EUR/JPY’s next candlesticks close below the Hammer’s wick or the 200 SMA, the pair will not be done with its downtrend. It could retest the 162.00 previous lows and even head for the 160.00 before seeing sustained demand.
What do you’re thinking that? Will EUR/JPY return to its uptrend in the subsequent few weeks?