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Daily Technical Analysis: ​​ EUR/JPY Could Spike On Renewed Volatility

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We have seen this week, that during risk-off as a result of uncertainty from the French elections that Equities has fallen, the JPY has strengthened and the Japanese Trade Balance has fallen. Despite this, PMI data in both the EU and Japan has been solid. Perhaps the EUR has already priced the French election risk, and the JPY has strengthened accordingly. Depending on first election results, we might see renewed volatility and possible spike.

In the wake of the first round of French elections, the EUR/JPY has been bought on dips, although the daily chart still shows a downtrend so this up-move might be just a correction. The POC is 116.20-35 (ATR low, D L4, 50.0) and it is the last POC zone for bulls. Rejection from POC should get the price to 116.80, 117.00 and 117.80 on higher volatility. Breakout should happen only above 117.85. If the price gets below 115.85 (D L5 support), 115.50 might be tested as the last line of defense for bulls. Be careful.

About the Contributor
Admiral Markets
Author: Admiral MarketsWebsite: http://www.admiralmarkets.com/
The Wave Analysis it for today the most flexible, powerful and perspective tool which allows to predict tendencies which lead to certain changes on financial charts on all time pieces. One of properties of this tool is its insufficient formalisation, proceeding from it the opinion of the author of the forecast made on the basis of the Wave Analysis always is subjective. As the Wave Structure constantly varies, the forecast on the basis of the Wave Analysis reflects opinion of the author at the moment of the forecast publication. The Wave Analysis is not trading system. It not the generator of signals on the conclusion or an exit 1from the transaction, therefore the schematical direction of movement of the price put on the chart should not be for the trader the guide to action on opening of positions. In case of formation in the market of conditions which, according to the author it is possible to use for drawing up of the trading plan - on a chart levels of acknowledgement of the chosen scenario, optimum areas of an input and levels of cancellation of the chosen scenario will be specified in addition.
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