S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico MarketFacts:
- Both MACD and RSI have formed a bearish divergence with a lower high.
- A potential double-top formation has occurred, signaling a possible trend reversal.
- The 78.6% Fibonacci retracement level has repeatedly acted as a strong reversal zone.
- The market anticipates two rate cuts in the Eurozone, while Japan is expected to implement one rate hike.
Recommendation:
- Transaction: Short position on EURJPY at the market price.
- Target: 158.644
- Stop: 164.893
Opinion:
EUR/JPY is on the verge of a trend reversal after forming a double-top pattern. The MACD is trending lower following a bearish crossover, while the RSI remains in bearish divergence, confirming a lower high. A stop-loss is placed above the previous high to invalidate this thesis, while the take-profit target is set at the 38.2% Fibonacci retracement level, which has previously served as support. Additionally, potential new tariffs on the Eurozone could push the ECB toward a more dovish stance, further pressuring the currency.
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