EUR JPY Analysis During Brexit & Trade Turmoil
Brexit negotiations continue in Brussels. The stage set is rocky confusion. Will the EU compromise on the backstop? If not, will PM Johnson request an extension? In the latest skepticism on how PM Johnson may try to avoid an extension is to attempt to persuade an EU country to veto one. French President Macron mentioned that the European Union will evaluate and decide if the new deal is possible that respects European Union principles by Friday October 11th.
Daily TF shows us a global bearish trend.
On a 4HTF, we see that the price moved below the critical level of 61.8% Fibo on October the 2nd, signifying the continuation of a downtrend. The pair has since traded in a range between 61.8% Fibo at 117.447 and support around 117.074.
The price rallied on Monday, mainly due to Yen weakness on improvement in risk sentiment and the possibility that a deal can be made between the United States and China, later this week. The price bounced from the 50% Fibo level that coincides with the bottom of our Ichimoku Cloud as resistance and started coming back down today with renewed uncertainties as the Trump administration placed eight Chinese technology giants on a blacklist over alleged human rights violations against Muslim minorities.
The short-term 10 EMA is pointing down and the price is starting to move below the mid-term 50 EMA.
Short positions look to be more favorable at this time. Wait for price to break and move below 61.8% Fibo, first target down will be support at 117.074, followed by support in the area of 116.864 and then 116.585.
Daily TF shows us a global bearish trend.
On a 4HTF, we see that the price moved below the critical level of 61.8% Fibo on October the 2nd, signifying the continuation of a downtrend. The pair has since traded in a range between 61.8% Fibo at 117.447 and support around 117.074.
The price rallied on Monday, mainly due to Yen weakness on improvement in risk sentiment and the possibility that a deal can be made between the United States and China, later this week. The price bounced from the 50% Fibo level that coincides with the bottom of our Ichimoku Cloud as resistance and started coming back down today with renewed uncertainties as the Trump administration placed eight Chinese technology giants on a blacklist over alleged human rights violations against Muslim minorities.
The short-term 10 EMA is pointing down and the price is starting to move below the mid-term 50 EMA.
Short positions look to be more favorable at this time. Wait for price to break and move below 61.8% Fibo, first target down will be support at 117.074, followed by support in the area of 116.864 and then 116.585.
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