EUR/JPY rebounded from the 123.00 level on the H4. The pair formed a “piercing line” pattern.
EUR/JPY: outlook has worsened
Information is not investment advice
It looks like the euro is vulnerable to further declines versus the Japanese yen. Yesterday, the European Commission cut the euro zone’s GDP growth forecast for 2019 to 1.2% from 1.3% predicted in February. The reading is well below the 1.9% growth seen in 2018. This hurt EUR/JPY. Today, the ECB will release the accounts of its last meeting, and the risks for the euro are once again negative. In addition, the yen is gaining strength as a safe haven asset amid the problems in the US-Sino trade talks.
EUR/JPY was supported at 123.10 on Tuesday (50% of the advance since January). The decline below this level will open the way down to 122.15. On the other hand, it’s necessary to mention that the pair has already made a significant move down this week, so it can make an attempt to correct to 124.00. Selling pressure will reappear at this point. To return to power bulls need to push the price above the weekly pivot point at 124.65.
NZD/CAD has reached a 200-week MA (0.8950) and formed a “shooting star” candlestick on the D1. On the H4, we see a lower high.
XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865.
USD/JPY has been rising for almost a week except for Monday, but the strong resistance of the 50-day moving average at 105.80 may stop it from moving higher.
BoA released the report with the bullish forecast for the S&P 500 and shared its technical analysis. Let's discuss it in detail.
EUR/USD has violated the first resistance trendline area 1.1680