Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

EURUSD and USDJPY flirting with key levels

Market Analysis

EURJPY, 4H                

So far today we have a particularly strong Japanese yen and weak euro and sterling.  The EURJPY looks very oversold on the short term 1 hr and 4 hr charts but the Daily chart suggest this pair could still fall further from here.  On the daily chart the pair broke the important 200 day moving average on Monday and has been trading below this key level (120.00) all week. Next support would be around the 118.25- 118.00 zone with the 120.00 area now resistance to a move higher. The oversold situation in the 1 hr and 4 hour charts suggest a LONG position on these shorter time frames from the break of the lower Bollinger band. An entry was taken at 118.75 with target 1 on the 1 hour chart at the 14 ATR at 118.95 and target 2 on the 4hr chart at 119.05.

Elsewhere the key USD pairs are both flirting with key psychological levels as we await the North American session and the release of the FOMC minute later today. EURUSD is struggling to stay north of 1.0500 and USDJPY is struggling to stay north of 113.00, different pressures but both at important levels.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.

Click HERE to register the next webinar will start in:

Stuart Cowell

Senior Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Risk Disclosure.

Risk Warning: Remember Forex and CFDs are leveraged products and can result in the loss of all invested capital. Please consider our Risk Disclosure.