EUR/JPY Short-Term Strategy

[DailyFx]

Currency Pair: EUR/JPY
Chart: 15 Min Charts
Short-Term Bias: Long







The EUR/JPY has lost momentum after making a run for 170.0 in early August, and has taken a steep fall in the past few weeks. After peaking to the top of the channel on August 15th, the EUR/JPY dipped below the lower channel in the last 24 hours, and looks to have found support at 161.0.

We forecast the EUR/JPY to move within the channel, but a short-term correction looks to be in the works as the pair works it way back up from the bottom of the channel. We expect the downtrend to hold in the long-term, but the oversold signal illustrated in the RSI provides confirmation that the pair could be making its way back to the top of the channel. For the remainder of the trading session, we expect the EUR/JPY correction to unfold, and may test for resistance at 161.69 (21.4 Fib level).