The EURJPY price has broken into new lows, could this offer short opportunities this week?
Watch the video to learn more…
The Euro continues to weaken with little signs of any buyers coming into the market. The ECB is under pressure from rising inflation as well as the conflict between Ukraine and Russia. The strength meter shows the Euro continuing to decline and with the ECB struggling to balance rates we could see it continue to move lower. The JPY was the strongest currency on the strength meter and despite it being in a reversal zone the risk sentiment has changed. This has seen the USD and JPY gain early this week.
The price has already formed a new low on the 4hr time frame breaking through last week’s low. If the price continues to follow this momentum we could see the price move back to the untested value area low. On the daily profiles we can see that a large area of volume formed near the value area high, this area could be used as resistance for short trading opportunities.
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