EUR/USD flatlines while EUR/JPY and USD/JPY resume their descents
Outlook on EUR/USD, EUR/JPY and USD/JPY amid lower volatility as the festive season approaches.
EUR/USD trades in sideways range
EUR/USD continues to trade below last week’s $1.1009 high, formed marginally below its November peak at $1.1017, in decreasing volatility as the festive season approaches.
The currency pair now flirts with its late-August high at $1.0945 while remaining above its $1.0889 low, made on Friday. Further minor support is found around the 14 November high at $1.0887 and the 22 November low at $1.0852.
Only a rise above the $1.1009 to $1.1017 recent highs would put the 10 August high at $1.1065 on the cards.
EUR/JPY resumes its descent
Earlier this week EUR/JPY saw a rapid ascent to ¥158.57, as the Bank of Japan (BoJ) stuck to its ultra-loose monetary policy and provided no guidance on whether it may move away from it next year, before resuming its medium-term decline.
The 11 December high and late-October low at ¥157.68 to ¥157.70 acted as resistance in what looks like an Elliott wave abc correction which is deemed to have ended at this week’s high. It should be followed by an eventual slip through the current December low at ¥153.18, provided no rise above ¥158.57 is seen.
On the way down potential targets are Thursday and Friday’s highs at ¥156.49 to ¥156.48., the 200-day simple moving average (SMA) at ¥154.56 and the mid-December low at ¥153.86. In case of a rise above ¥158.57 being seen, the 55-day SMA at ¥159.45 could be reached.
USD/JPY once more slips
USD/JPY's rally from last week’s ¥140.95 five-month low as the BoJ kept its short-term rates at -0.1%, and that of the 10-year government bond yields around 0%, took it to Tuesday’s high at ¥144.95 before the downtrend resumed.
USD/JPY is sliding to its 200-day SMA at ¥142.67 below which lie the 7 and 14 December lows at ¥141.63 to ¥140.95.
Minor resistance above Thursday’s ¥143.56 high can be spotted at Wednesday’s ¥144.10 peak and the late-August to September lows at ¥144.45 to ¥144.54.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
