Chart of the day EURJPY minor uptrend at inflection zone with bearish elements ahead of ECB BOJ

Blue avatar for guest contributors
By :  ,  Financial Analyst

Short-term technical outlook on EUR/JPY (Thurs 14 Jun)

Key technical elements

  • Since our previous “Chart of the day” report dated on 07 Jun 2018, the EUR/JPY cross pair had staged the expected up move within its minor uptrend and it is coming close to the intermediate resistance/target of 131.10/35.
  • The on-going minor uptrend in place since 30 May 2018 low of 124.59 is now right below a key inflection zone of 130.60/131.35 which is defined by a confluence of elements. Firstly,  the medium-term descending channel resistance (depicted in pink) from 02 Feb 2018 high. Secondly, the minor range resistance from 14 May/22 May 2018 that led to a recent steep decline to print the 30 May 2018 low of 124.59. Thirdly, a Fibonacci retracement/projection cluster (see daily & hourly charts).
  • Bullish exhaustion signs have emerged where the EUR/JPY has traced out a minor bearish “Ascending Wedge” configuration in place since 08 June 2018 minor swing low with its upper boundary that coincides with 130.60 and lower boundary acting as a minor support at 129.90. In addition, the hourly RSI oscillator has flashed a bearish divergence signal close to its overbought zone. These observations suggest that recent upside momentum of price action has started to wane.
  • The next significant short-term support rests at 129.45 (minor swing low areas of 11/13 Jun 2018) and 127.90/50 zone (50%/61.8% Fibonacci retracement of the on-going minor uptrend from 30 May 2018 low to yesterday, 13 Jun U.S. session high of 130.35 & minor congestion area from 31 May/05 Jun 2018.

Key Levels (1 to 3 days)

Intermediate resistance: 130.60

Pivot (key resistance): 131.35

Supports: 129.90 (trigger), 129.45, 127.90 & 127.50

Next resistance: 133.10


Therefore as long as the 130.60 short-term pivotal resistance is not surpassed and an hourly close below 129.90, the EUR/JPY may shape a decline towards the next intermediate supports at 129.45 follow by 127.90 in the first step.

On the other hand, a clearance above 131.35 shall invalidate the medium-term downtrend in place since 02 Feb 2018 for a further recovery to target the next resistance at 133.10 (the swing high area of 25 Apr 2018 & close to the 61.8% Fibonacci retracement of the medium-term downtrend from 05 Feb 2018 high to 30 May 2018 low).

Charts are from eSignal


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed.  No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Related tags: Forex

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar