EUR/JPY Long-Term Analysis: Ranging
EUR/JPY pair is in an upward move in a ranging market. The brief uptrend on September 28 was stalled at the resistance of 130.00. The pair retraced to the low of level 129.67 and began a fresh uptrend. Since July, buyers have not been able to break the overhead resistance at level 130.00. If the overhead resistance is breached, it will signal the resumption of the uptrend. Meanwhile, on September 28 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise but reverse at level 1.272 Fibonacci extension or level 131.12.
EUR/JPY Indicator Analysis
The currency pair has a bullish crossover. That is, the 21-day SMA crosses above the 50-day SMA which indicates a buy signal. EUR/JPY pair is at level 54 of the Relative Strength Index period 14. It indicates that the market is in the uptrend zone and above the centerline 50. Presently, the pair has fallen below the 20% range of the daily stochastic. It has reached the oversold region. The stochastic bands are sloping horizontally.
Technical indicators:
Major Resistance Levels – 133.00, 134.000, 135.000
Major Support Levels – 128.000, 127.000, 126.000
What Is the Next Direction for EUR/JPY?
On the 4-hour chart, the pair is in an upward move in a ranging market. Following its rejection at the 130.00 high, the market declined to level 129.73 and resumed consolidation above the current support. Meanwhile, on September 28 uptrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise to level 2.618 Fibonacci extension or level 132.15.
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