Daily Market Report – EUR/JPY Another Rejection? September 13, 2017

By Mexgroup.com

EUR/JPY Hovers Below A Major Resistance

EUR/JPY has managed to increase as much as 132.00 in the morning, but failed to stay near the today’s high and now is trading in the red again. Price reached a very strong dynamic resistance, so the current drop is understandable. A minor decrease will appear if the Nikkei stock index will drop in the upcoming days.

The Yen has increased versus all its rivals as the JP225 has found temporary resistance and now is going down, but this could be only a temporary decrease. JP225 decrease is natural after the impressive rally and after the breakout above the 19700 horizontal resistance. Nikkei could come down to retest the broken levels before will resume the upside movement.

The Nikkei’s next upside target will be at the 20058 static resistance, a further increase will punish the Yen, which should drop versus all its rivals.

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Price has retested the outside sliding line (SL), but failed to reach the median line (ml) of the black ascending pitchfork. Only a valid breakout above the mentioned levels will confirm a further increase. Is trapped within the inside sliding line and the outside sliding line, so we’ll have a fresh trading signal once the rate will escape from this chart pattern.

The current rebound was expected after the failure to retest the inside sliding line (SL) and the upper median line (uml) if the minor descending pitchfork. Technically, it could climb much higher because the Nikkei stock index is expected to resume the rebound.

 EUR/USD Increases Ahead The US Data

13eurusd

EUR/USD resumed the yesterday’s bullish candle and now is trying to retest the upper median line (uml) of the minor ascending pitchfork. Could be attracted by the confluence area formed at the intersection between the upper median line (uml) and the upper median line (uml) of the descending pitchfork.

A rejection from the mentioned resistance levels will send the rate down again, an important downside target will be at the confluence area formed by the median line (ml) of the descending pitchfork with the median line (ml) of the ascending pitchfork.

USD/CAD Bounced Back

13usdcad

The USD/CAD has managed to increase a little in the yesterday’s session, but failed once again to reach the median line (ml) of the minor ascending pitchfork. So the current minor decrease is natural, could retest the lower median line (lml) of the ascending pitchfork, a rejection from there will send the rate much higher on the short term. Is trading near the 1.2150 level, but you should be careful because the US data could bring a high volatility.

By Olimpiu Tuns

Market Analyst

 

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