EUR/JPY: Euro Yen looking for a slight correction!
Good Afternoon Traders, welcome back to EverythingFX.
The Euro is currently trading at 120.502 against the Japanese Yen during today's London session!
Let's take a look at the daily timeframe for starters, We saw a nice slow down in momentum in and around a minor level of resistance of 121.355. We know that a slow down in momentum is consolidation on the lower time frames including the fact that after such a rapid push to the upside we are bound to get a retracement!
Dropping down to the 4-hour timeframe we saw a nice bearish reversal off the highs and have now printed a new low, so from a technical picture I do see us potentially having a push up in price before heading lower! As shown in the screenshot above, a retest if the highlighted region would be a good place to get in to ride this back down with an intraday target of 120.000 and 119.500 going forward! What would invalid this bias is a break back above the 121.300 handle!
Fundamentally we have the ECB interest rate decision out tomorrow as well as President Draghi's last ever speech, so it will be interesting to see if he goes out with a bang before Lagarde steps in! Stay tuned to our market news section, twitter feed as well as our Social media accounts for further updates!