Forex Chart Of The Day: EURJPY- ECB Raises Rates

The price of EURJPY has rallied in line with our expectations as the ECB hiked interest rates by 50bps. Can this offer further trading opportunities?

Watch the video to learn more…

EURJPY Analysis

The price of EURJPY has exploded higher outside of the bearish channel we highlighted in our previous video due to the recent rate hike decision from the ECB. The European Central Bank has hiked interest rates from 2.00% to 2.50% today. President Lagarde also stated that the ECB will continue to hike rates by 50 bps to continue to fight the rising inflation. 

When we looked at the chart in the previous video we identified the price was trading in a strong bullish weekly channel. The price has retested this channel low around 141.00 and rallied forming new highs on the lower time frame. Since then the price has traded through the key channel resistance and has recently formed a new high outside of it. 

This momentum in the market could continue due to the recent comments from the ECB. When looking at the 4hr time frame we can see the price forming higher highs and higher lows. Recently the price broke through two key highs of 145.25 and 146.00. If the price were to return to either of these highs and find support we could see opportunities form for buyers again.

Did you see our GOLD Analysis? You can see it here.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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