04/01/23 Daily Currency Strength Analysis: Potential Short Forming On EURJPY

Wed 4th January 2023

Today, Our Daily Currency Strength Weakness Video will focus on:

• EURJPY
• EURAUD

Charts Provided by Charles Clifton

Daily Analysis By Jon Kibbler

Potential Short Forming On EURJPY

In today’s currency strength video we identified a potential short trading opportunity forming on EURJPY.

The EUR has topped the day traders table at W1 and the JPY stands at S2 on both tables. 

Looking at the monthly chart of EURJPY we can see how clear the recent price action has been.

Price found resistance at the 2014 highs of 148.50 seeing price fall through multiple support levels. 

This included the long term trend line support which was the base for a bullish channel. 

Now this has been traded through we could expect the market to move to the next level of support at 136.00.

Technical Observations

• The EUR is W1 on the day traders tables and the JPY is S2.
• The monthly and weekly chart confirm a breakout of the bullish channel.
• Price could be heading towards the next monthly level of 136.00.
• The daily chart highlights the price is in a downward trend making new lows and lower highs.
• Currently the price is trading below the 200 Daily Moving Average and key resistance of 141.00.
• A retest of this resistance area could offer short trading opportunities.