Continuation of the EURJPY trend

EURJPY significantly stands out of the variety of assets by the fact that it does not have clear trend components. It means that only media news and monetary policy affect its rate. The last one is actually not on the JPY side.

Basic arguments

The proximity of the rates between EUR and JPY makes this asset quite stable and with no inner trend. Also, this asset remains in balance, and the price is fair. So, there is a chance of sideways movements soon that will stay until we have new significant economic events.

Technical arguments

The technical situation indicates the continuation of a downward trend, which should remain the same even after a small correction.

Analysis of big traders

Picture 1. The price chart of EURJPY and the chart of the indicator of big traders for the period of 27.07.2019 - 27.08.2019.

As we can see in picture 1, even significant growth of the positions had no influence on the opinions regarding a downward trend for this asset.

Forecast

Taken into account all the information above, we can assume that this asset will have a DOWNWARD movement, which is indicated by various factors.

We recommend you to use the following indicators for better control over positions:

• Stochastic
• Bollinger Lines

Stochastic helps to recognize when the market moves sideways and to recognize minimums and maximums. Bollinger Lines helps to see when the market is ready for a correction.

We recommend keeping the ratio of 4 trades down, 3 trades up for a moderate level of risk.