EUR/JPY Technical Outlook
- EUR/JPY multi-week decline may be coming to an end
- 18 month trend-line and price around it in focus
EUR/JPY Technical Outlook Hinges on Test of Trend Support
EUR/JPY spent the first three weeks of October rising and then the last three weeks falling; we could see a course change again here soon. There is a proven trend-line getting tested at this time, one that dates to the May 2020 low.
It’s first connecting point was created in September, but then validated in October. What I would like to see is a forceful rejection off the trend-line that indicates a flush and change in momentum. Given the overall price action since June it is seen that this could lead to a further filling out of a wedge pattern.
For traders looking for a fade into support, EUR/JPY here soon could be a good candidate. If we don’t see a reaction off trend-line support then this outlook will of course change.
EUR/JPY Daily chart
EUR/JPY Chart by TradingView
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—Written by Paul Robinson, Market Analyst
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