March 19 | EUR / JPY technical analysis: H4 chart, Pivot levels
The euro against the Japanese yen at yesterday’s trading rewrote the October 2018 maximum at 130.657, but was unable to gain a foothold above the 130.40 level and began a new downward wave.
Today the EUR / JPY pair crossed the daily and weekly pivot levels from top to bottom, renewing the minimum since March 11. During the week, the price of a trading instrument has been moving in a sideways channel and is now approaching the resistance levels DS1 and WS1
I will follow the price movement in the 129.340-129.194 zone – wait for a breakout, or a rebound and a new upward wave.
Daily Pivot – 129.998;
Daily Resistance 1 – 130.408, DR2 – 131.067, DR3 – 131.477;
Daily Support 1 – 129.339, DS2 – 128.929, DS3 – 128.270.
Weekly Pivot – 129.788;
Weekly Resistance 1 – 130.803, WR2 – 131.398, WR3 – 132.413;
Weekly Support 1 – 129.193, WS2 – 128.178, WS3 – 127.583.
EUR / USD. 19.03 | The dollar is back under the 1.1900 level
On Friday, the dollar returned to the 1.19 level, having recouped most of the losses incurred as a result of the FOMC meeting. The American regulator said that it does not intend to raise interest rates until 2023, however, the recovery of the dollar and the growth of government bond yields indicate that market participants are still guided by an optimistic economic scenario.
The dollar was also supported by an increase in the manufacturing activity index (according to the Philadelphia Fed report), which also underpins the improved economic forecasts of the central bank. The index rose from 23.3 to 51.8 points, reaching a maximum of the last 48 years.
At the same time, the euro is under pressure from the worsening situation with the coronavirus in Europe. Many countries are returning to lockdowns, others are in no hurry to remove restrictions. The head of the European Commission, Ursula von der Leyen, believes that all this is due to a decrease in the rate of vaccination against the background of refusal of the AstraZeneca vaccine due to possible severe side effects.
The economic calendar is empty for today. The current quote for the EUR / USD pair is 1.1880. The RSI indicator weakly declines from the neutral zone, which signals further moderate strengthening of the dollar.
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