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EURJPY Long Term Forecast For The Members

EURJPY Long Term Forecast For The Members

  • The dovish tone in FOMC minutes
  • Uncertainty in trade wars – at least an unsatisfactory solution –
  • Slow down signals in Eurozone economies – especially in Germany –
  • Most importantly, the IMF’s global growth projections suggest that Japan’s healthy growth may cause the Yen to shine in the future. Below, we see the IMF’s growth expectations for 2019. According to IMF estimates, although growth forecasts have been lowered, strong growth in the Japanese economy is highlighted.

2018          2019         2020

Japan                             1.1              0.9            0.3

EU                                   2.2               2              1.8

World                            3.7              3.7            3.7

In the ECB minutes, it was noted that falling energy prices would remain at the same level until the summer of 2019.

With these developments, we see the EURJPY Futures active term contracts as technically

The pair is trading in a triangle in the weekly charts.

The picture is Euro-negative-  trading below moving averages-. A golden cut of MAs in progress.

In the daily charts:

We see a huge Cup and Handle formation completed.

124.700 is the critical support. The moving averages are also in the resistance position.

On the smaller chart timeframes:

The pair is trading in a bearish trend. Closings below 125.200 would add weight to bearish pressure.

What Can be done?

In case of EURJPY’s active-term contracts makes daily closings below 124.700, our targets will be:

124

123

119

and

the ultimate target of the formation is 114.000.

What to pay attention:

The movement will not begin without closing daily under 124.70

In the near term, the breakout of   127 may invalidate the formation.

Good Luck

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