Manufacturing and companies PMIs from the euro area are due right now!
Whereas others have their eyes on financial information releases, different merchants are pricing in geopolitical tensions between Russia and Ukraine.
Will right now’s occasions lengthen or break EUR/JPY’s downtrend?
EUR/JPY 1-hour Foreign exchange Chart
Fundamentals & Catalysts
Later right now we’ll see manufacturing and companies PMI studies from Germany, France, and the Eurozone. Markets predict February’s numbers to point out enhancements because the influence of the Omicron variant fades from January.
After all, any positive aspects could also be capped by geopolitical issues in Ukraine. U.S. Secretary of State Antony Blinken and Russian Overseas Minister Sergey Lavrov will meet on Thursday whereas Presidents Putin and Biden have agreed “in precept” on a summit to debate de-escalation “if an invasion hasn’t occurred” by then.
Judging by the rise in Russian troops alongside Ukraine’s borders, although, Thursday’s conferences might not push via.
Additional escalation in geopolitical tensions might lengthen EUR/JPY’s downtrend because the frequent foreign money is bought whereas merchants purchase the safe-haven yen.
Value Motion
EUR/JPY has been on a downtrend since two weeks in the past however there have been sufficient bulls on the 130.00 space to forestall additional losses.
Right this moment, EUR/JPY is testing a development line resistance whereas Stochastic hints of a bearish divergence on the 1-hour chart. It additionally doesn’t assist the euro that the 100 SMA has crossed over the 200 SMA, one thing that has led to sustained directional developments the final 3 times that it occurred on the chart.
Bears who’re betting on the euro taking hits from Ukraine’s tensions can begin scaling in at present ranges and intention for final week’s lows. You may even intention for February’s lows if there’s sufficient momentum.
If we don’t see escalations in geopolitical tensions right now, or if merchants give attention to stronger PMIs from the euro area, then EUR/JPY might break above its development line resistance and head for final week’s highs close to the 200 SMA earlier than the sellers step in.
If you happen to’re undecided about shorting the euro in opposition to the yen, then it’s also possible to look forward to catalysts or momentum earlier than you enter your trades.
Whichever course you select to commerce, be sure acquired your capital lined with cease losses and a strong buying and selling plan!
This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market entails threat. Please learn our Danger Disclosure to ensure you perceive the dangers concerned.
