{"id":50485,"date":"2014-05-05T07:34:55","date_gmt":"2014-05-05T11:34:55","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=50485"},"modified":"2014-05-05T07:34:55","modified_gmt":"2014-05-05T11:34:55","slug":"selling-pressure-pulls-eurjpy-near-breaking-point","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/05\/selling-pressure-pulls-eurjpy-near-breaking-point\/","title":{"rendered":"Selling Pressure Pulls EUR\/JPY Near Breaking Point"},"content":{"rendered":"<p>Technical Sentiment:\u00a0<strong>Neutral<\/strong><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>Heavy selling on CNY data miss puts pressure on JPY pairs as well;<\/li>\n<li>Euro zone GDP growth and inflation outlook cut by European Commission;<\/li>\n<li>EUR\/JPY still moves within bullish channel, testing the support area.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><em>The long term landscape still shows EUR\/JPY stuck in a large triangle formation, however in the last month the pair has been respecting a tight bullish channel more than anything else. This week, irrespective of the preferred direction, EUR\/JPY is bound to trade outside the triangle formation, which in turn will increase volatility and daily moving ranges.<\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><strong>Technical Analysis<\/strong><br \/>\n<img decoding=\"async\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/05\/eurjpyh4-4th-May1.png\" alt=\"EURJPY 5th May\" \/><br \/>\n<strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify;\">EUR\/JPY is trading just around 141.50 after testing the support trendline of April\u2019s bullish channel which coincides with the support of the larger triangle formation. The 50-Day and 100-Day Simple Moving Averages offer support between 141.27 and 141.43. On the 4H chart, all major moving averages are close to the support area as well.<\/p>\n<p style=\"text-align: justify;\">On the 4H timeframe, Stochastic is in oversold territory, bringing up the possibility that the current dip might reverse here, allowing EUR\/JPY to continue higher within the bullish channel. The first target towards the upside is marked by last week\u2019s highs around 142.40. A rally above 142.70, the resistance represented by two trendlines, will open the way towards 143.45 (April\u2019s high) and 143.77 (top from early March).<\/p>\n<p style=\"text-align: justify;\">The bullish continuation will be invalidated if price drops below 141.27, breaking the bullish channel configuration. Further confirmation towards the downside comes on a cross below 140.96. Once a lower low is formed, the preferred strategies will be selling support breaks and rallies since the short term trend will be bearish. Below 140.96, EUR\/JPY will first eye the large psychological level 140.00. The support from February, priced at 139.10, is the secondary target.<\/p>\n<p>*********<br \/>\n<em>Prepared by Alexandru Z., Chief Currency Strategist at <\/em><a href=\"http:\/\/www.capitaltrustmarkets.com\/\"><em>Capital Trust Markets<\/em><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technical Sentiment:\u00a0Neutral Key Takeaways Heavy selling on CNY data miss puts pressure on JPY pairs as well; Euro zone GDP growth and inflation outlook cut by European Commission; EUR\/JPY still moves within bullish channel, testing the support area. The long term landscape still shows EUR\/JPY stuck in a large triangle formation, however in the last &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/05\/selling-pressure-pulls-eurjpy-near-breaking-point\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Selling Pressure Pulls EUR\/JPY Near Breaking Point&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50485","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/50485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=50485"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/50485\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=50485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=50485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=50485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}