The EURJPY price has broken lower on the high volatility news today. Will this momentum continue and what volume profile levels do we need to watch out for?
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The EURJPY price reacted from a previous high volume node, this level was rejected after the high volatility news of today. The USD CPI data came in lower than forecasts showing a slow down in the inflation rate for the month of July. This caused the USD to fall but the JPY to gain and this could continue in the near term against weaker currencies such as the Euro.
The weekly volume profile shows us that the price rejected the HVN and the 4hr is forming a new low. This could see the price continue even lower back to other volume profile levels of interest. An untested weekly point of control rests at 136.14 and could be a target for short sellers.
On the daily volume profiles we can see that the price is trading below the current day’s value area low. If the price were to open here we could expect the selling momentum to continue on a rejection of this level or a high volume level higher up.
Did you see our AUDJPY analysis? You can see it here.
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