Daily Market Report – EUR/JPY Breakdown Needs Confirmation October 16, 2016

16eurjpy

EUR/JPY – Turned To The Downside

The EUR/JPY dropped and touched fresh new lows today, even if the Nikkei stock index has increased further. The Yen increase also versus the Cable today, not only against the Euro. The JP225 has resumed the upside movement, has managed to reach the 21350 level and maintains a bullish perspective on the daily chart.

The Nikkei has increased sharply in the last weeks and seems poised to hit fresh new highs in the upcoming period, only a minor drop will force the Yen to accelerate the appreciation versus its rivals. The USD/JPY decreased in the last hours as the Nikkie stock index has slipped lower and erased some of the morning gains.

The Yen increased even if the Japanese Revised Industrial Production increased only by 2.0%, less versus the 2.1% estimate and versus the 2.1% growth in the former reading period. On the other hand, the Euro-zone Trade Balance and the German WPI have come in better than expected, but the Euro wasn’t impressed.

The EUR/JPY opened with a gap down today, signaling that the bears are very strong on the short term. Price has come back to close the morning gap, but failed to stay above the 132.13 Friday’s high. The next downside target will be at the upper median line (UML) of the major ascending pitchfork. Remains to see if we’ll have a retest of the broken chart pattern, or will continue to drop. I’ve said in the previous weeks that only a valid breakdown below the UML will confirm a larger drop.

GBP/JPY Pressuring A Support Level

The rate has dropped today’s and resumed the Friday’s minor drop. Price is pressuring the 148.46 static support (resistance turned into support), but only a valid breakdown will signal a drop towards the first warning line (WL1) of the ascending pitchfork. However, a consolidation above the 148.46 will lead the rate towards the 151.66 level.

EUR/CHF Erased The Morning Losses

16eurchf

The EUR/CHF opened with a gap down and dropped as much as 1.1487 level. The bulls have stepped in again and have forced the rate to climb above the 1.1510 yesterday’s low, but this could be only temporary and could drop again. The next downside target will be at the upper median line (uml) of the descending pitchfork.

By Olimpiu Tuns – Market Analyst

Profil1

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.

Risk Disclaimer:

Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.

The post Daily Market Report – EUR/JPY Breakdown Needs Confirmation October 16, 2016 appeared first on mexgroupblog.

Source:: Daily Market Report – EUR/JPY Breakdown Needs Confirmation October 16, 2016

Won't your trader friends like this?
MEX Group
About the Author
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China.
Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands. Visit Mex Group's website HERE

Related Posts

Leave a Reply

*