EUR/JPY long-term technical analysis

Uncertainties in Eurozone mounting and put pressure on Euro as whole currency. The long awaited Brexit might be triggered in March, and also there is the strong impact of President Trump policies. With all of the major news which is not favorable for Euro, the currency should continue its slide this year.

Overall, EUR/JPY moved between 118.23 – 122.51 or a 428 pip range. This month, the pair started with a bullish movement in the first week after a reaction at 120.00 psychological level. The bullish sentiment might continue, but it will depend on the UK, and the election results in the Eurozone.

Click here to see previous month EUR/JPY long-term technical analysis February 2017

New Month

Monthly chart

Rejection happened in EUR/JPY monthly chart as the price fell outside of 121.50 – 127.00 range. There is a bullish attempt at the start of March, but if the bullish movement not sustainable, the pair should continue lower to test the broken channel.

This month, 121.50 is the area of interest once again, and traders could look for a short position if the pair is unable to close above it.

Weekly chart

Potential bullish setup on the weekly chart, the price has not closed yet, however. If the first week of March could close higher above previous week high at 120.31, it will form a bullish engulfing pattern. Moreover, traders will take a look at upcoming weeks, will the price move further above the bullish engulfing pattern?

Daily chart

Consistently lower on the daily chart, EUR/JPY is moving inside the bearish channel. The price needs to close above the bearish channel to overturn the bearish trend. If the price cannot close above the channel, we will see a continuation of the bearish trend in the pair.