EURJPY Reaches 133.00; Where to Next?

by Justin Bennett  · 

April 19, 2018

by Justin Bennett  · 

April 19, 2018

by Justin Bennett  · 

April 19, 2018


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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

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On April 10 I wrote about how I was keeping an eye on the EURJPY 133.00 handle. The level has served as a pivot since September of last year and was therefore likely to trigger a reaction if tested.

That retest materialized about seven hours ago. As of now, we can see some selling pressure building which has the yen cross trading at 132.85.

So what am I doing with this information?

Nothing at the moment. Although 133.00 is likely to trigger a reaction, I don’t have enough feedback from the market to make a decision here.

I’m still interested in getting short as I believe the February selloff was the start of a more significant pullback, but timing is critical.

I will, however, consider a short if we get a bearish pin bar at the 133.00 area. Otherwise, a daily close (New York 5 pm EST) above 133.00 would expose the next key resistance level at 134.30/40.

In fact, that 134.30/40 area is an even stronger resistance zone than 133.00 in my opinion. It also lines up nicely with the 61.8% Fibonacci retracement when measuring from the February 2 high to the March 23 low.

To be clear, I’m in no hurry to sell the yen crosses. I do think another leg lower is in the cards, but not until buyers have exhausted their resources.

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EURJPY key levels on the daily chart


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15  Comments

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  1. Your analysis are good and don’t forget that the EURJPY is very closely correlated with the CADJPY.

    The latter pair is aggressively approaching its 61.8 Fib Level.

    Moreover, other important economic factors also strongly suggest that China may triumph US in the impending trade war which will inevitably foster Japan’s economic growth.

  2. Thank you Justin for your analysis. It would be very helpful if we could click on the chart posted to enlarge it, so as to see the numbers on the Y axis more clearly.

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