Baxia Markets
April 15, 2024

EURJPY Shows Signs of Bullish Momentum Amid Mixed Signals

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EURJPY has seen a mix of bullish and bearish indicators, reflecting the complexities of the current market sentiment. While Eurozone Industrial Production (MoM) posted a positive growth of 0.8% in February, reversing a 3.0% decline in January, the currency pair has displayed contrasting short-term and long-term trends.

The Asian trading session saw EURJPY starting with a bullish tone, with the currency pair managing to expand the Bollinger Bands' upper and lower limits. The price remained closer to the upper band, signaling a short-term bullish trend. This was further supported by both the MACD and RSI oscillator indicators.image-png-Apr-15-2024-01-13-57-7081-PM

Despite the short-term bullish momentum, the long-term trend for EURJPY remains bearish. The Exponential Moving Averages (EMA) 50 and 200 indicate a bearish market, with the EMA 50 trading below the EMA 200. However, the EMA 50's direction towards the EMA 200 suggests a potential slowdown in bearish momentum.

The value area of the volume profile indicator has seen EURJPY enter the range during the London trading session, hinting at a potential reversal. A break above the upper boundary of this value area could further support the bullish case for the currency pair.

Both the MACD and RSI oscillator indicators are pointing towards growing bullish momentum. The MACD signal line is hovering above the zero line, while the RSI has broken above the bearish threshold of 60%, signaling a positive shift in market sentiment.

In summary, the overall trend for EURJPY is sending mixed signals to traders. While the long-term trend, based on EMAs, remains bearish, there are signs of a budding bullish momentum supported by short-term technical indicators and positive Eurozone industrial data.

Traders should exercise caution and closely monitor key resistance and support levels, as well as the performance of both short-term and long-term indicators. The potential for a trend reversal exists, but confirmation through sustained price action and volume is essential before taking decisive trading positions.

With the market showing a blend of bullish and bearish signals, staying adaptive and responsive to changing dynamics will be crucial for navigating EURJPY trading effectively in the coming days.

Key Takeaways:

  1. EURJPY shows short-term bullish trend despite long-term bearish indicators.
  2. Eurozone Industrial Production rises 0.8% in February, benefiting EURJPY momentarily.
  3. EMA 50 points towards EMA 200, suggesting slowing bearish momentum.
  4. MACD and RSI indicators support growing bullish momentum for EURJPY.
  5. Market enters value area during London session, hinting at potential reversal.

Key Economic Releases to Watch Today

USD, Import Price Index (MoM)

Forecast 0.3% vs Previous 0.3%



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