EUR / JPY Technical Analysis Oct 20

Can the sellers force the EURJPY lower at 113.21?

The pair has been recently oscillating between the range of 115.04 and 113.21 as the sellers were able to overtake the buyers and lead the price.

The sellers attempted to place greater pressures since the 14th of October 2016 and were indeed the big gainers with a profit of around 200 pips to their favour. Today’s major pivot point area is the 113.21 level.

Probable Scenario

The latest stabilization of the pair slightly close to the 113.21 area is a good indication that the price may retrace once again to the downside.

In the event where the pair drops, the sellers could lock their profit at 112.06.

The Stochastic oscillator confirms the downtrend formation thus showing that the pair has greater probabilities of retracing downwards.

eurjpy-oct-20-2016

Alternative Scenario

In contrast, in the condition where the bullish pressures get more tensed and the pair breaks above the 113.91 level, the price could rise to 115.04.

Today’s Major Announcements

  • The ECB Interest Rate Decision (Oct 20), the ECB Deposit Rate Decision, and the ECB Monetary Policy Statement and Press Conference releases could have a strong impact on the euro
  • There are no any releases on the Japanese yen

Synopsis

·         Probable trend (Bearish): 113.21

·         Bearish take profit target: 112.06

·         Stop loss target: 113.91

·         Alternative trend (Bullish): 113.91

·         Bullish take profit target: 115.04