4 Nov 2019
EUR/JPY technical analysis: Bearishly configured ahead of ECB’s Lagarde speech
- The market will focus on ECB’s Christine Lagarde speech at 20:30 GMT.
- The level to beat for bears is the 120.85 support.
EUR/JPY daily chart
EUR/JPY is trading in a bear trend below its 200-day simple moving average (DMA). However, in October the spot received a boost and is now hanging in a range near the 121.00 handle. Traders will be focusing on ECB’s Christine Lagarde speech at 20:30 GMT. If she makes a shocking comment about monetary policy, it can lead to high volatility.
EUR/JPY four-hour chart
On the four-hour chart, the spot is trading above its primary SMAs, suggesting bullish momentum in the medium term. However, the market is ranging and the buyers will need to overcome the 121.20 and 121.50 resistance in order to resume the bulls trend.
EUR/JPY 30-minute chart
The market is creating a head and shoulder top on, suggesting a break to the downside. The level to beat for bears is the 120.85 support level followed by the 120.45 and 120.10 levels.
Additional key levels