EURJPY retreats as market react towards Fed’s hawkish stance.
“Federal Reserve’s decision and statement prompts major selloff on non-US currencies, further cementing greenback’s dominance in the FX market.
Following Federal Reserve’s interest rates decision, Euro and other major currencies experienced major selloff during yesterday’s American trading session. In its statement, Fed officials acknowledged that recent economic data point towards modest growth in spending and production. Likewise, they mentioned that labour market remains robust while inflation continues to reflect the imbalance of supply and demand in the market.
Quick recap on EURJPY
While overall structure remains tilted towards the upside, recent retracement from the top signals possible change in its long-term trend.
EURJPY Weekly Technical Analysis
From weekly perspective, the pair stages a retracement wave as it fails to overcome 114.07.
EURJPY Daily Technical Analysis
Price action at the stop shows significant bearish pressure from the top, which was tested twice in between June and July. MACD also begins to form bearish momentum with the pair currently testing at key support level of 141.35.
ORDER: SELL STOP
STOP LOSS: 141.50
Target 1: 139.50
Target 2: 138.10
ZFX Analyst’s Comment
Recent price action from strong resistance level suggests possible downside opportunity that may prolong. Thus, a close below nearest support level is required to obtain further confirmation.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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