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Downside breakout could target 113.00: EUR/JPY technical analysis

13:40, 24 April 2020

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EUR/JPY technical analysis

The EUR/JPY pair has recently fallen to a fresh 2020 trading low as the euro currency comes under selling pressure on the foreign exchange market.

EUR/JPY analysis shows that the pair has broken its established price range and may start to target the 113.00 support level.

EUR/JPY medium-term price trend

Recent weakness in the euro currency and price stabilisation in the Japanese yen has seen the EUR/JPY pair falling to a fresh 2016 trading low.

EUR/JPY technical analysis over the medium-term shows that a major range break has occurred, and could prompt a further decline towards the 113.00 level.

EUR/JPY technical analysis

The daily time frame also shows that a large falling wedge pattern is present, with the bottom of the pattern located around the 113.00 level.

The EUR/JPYmay see further medium-term losses if price continues to trade under the 116.12, which is the former yearly price low for the pair.

With this in mind, watch out for a 300 point down move if EUR/JPY bulls can hold price below the range breakout.

US100

11,181.40 Price
+0.150% 1D Chg, %
Long position overnight fee -0.0141%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 1.5

XRP/USD

0.49 Price
+1.740% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00600

Oil - Crude

80.61 Price
-0.760% 1D Chg, %
Long position overnight fee 0.0240%
Short position overnight fee -0.0439%
Overnight fee time 21:00 (UTC)
Spread 0.03

BTC/USD

19,506.95 Price
-0.160% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 60.00

EUR/JPY short-term price trend

EUR/JPY technical analysis over the short term highlights that the pair has a bearish trading bias while price trades below the 118.20 level. 

A head-and-shoulders pattern has formed on the lower time frames, with the EUR/JPY pair staging a breakout below the neckline of the bearish pattern.

EUR/JPY technical analysis

The neckline of the bearish pattern is located around the 117.00 level, and indicates a coming decline towards the 112.00 level.

Weakness below the 117.00 level is likely to see technical selling pressure increase towards the EUR/JPY pair over the short-term.

EUR/JPY technical summary

EUR/JPY analysis highlights that the pair has fallen to a new yearly low. Sellers may now start to move the pair towards the 113.00 to 112.00 technical region.

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