The EURJPY tested major resistance today ahead of the ECB meeting.
The EURJPY tested major resistance ahead of the ECB meeting. When a pair hits a level so many times, we often refer to that level the “bull/bear” line. What that means in essence is when the pair is below it, you remain bearish. Above it, you turn bullish (we have this as a normal level in the Forex Analytix platform for all instruments we cover).
Tomorrow is going to be very interesting for the EURJPY as we have the ECB meeting. The market is anticipating a dovish ECB ahead of tomorrow. In the event the ECB is not as dovish as the market expects, the risk is we break back above this “bull/bear” line tomorrow which comes in at 122.20. The 4hr RSI has been divergent, but also back to mid range, which also means anything can happen.
Blake Morrow
