EUR/JPY Long-Term Analysis: Bullish
On April 23, the EUR/JPY pair has broken the resistance at level 130.00 as the price rallied on the upside. With this breakout, the price action will confirm the Fibonacci tool levels. On March 18, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise to level 1.618 Fibonacci extensions. That is the high of level 135.035. From the price action, the market is approaching level 131.65.
EUR/JPY Indicator Analysis
EUR/JPY has risen to level 69 of the Relative Strength Index period 14. It indicates that the market is approaching the overbought region. The 21-day and 50-day SMAs are sloping northward indicating the uptrend. The Yen will continue to rise as long as price bars are above the moving averages.
Technical indicators:
Major Resistance Levels – 131.00, 132.000, 133.000
Major Support Levels – 128.000, 127.000, 126.000
What Is the Next Direction for EUR/JPY?
EUR/JPY has resumed the main trend as the price broke the initial resistance at level 130.00. One factor that will hinder the current uptrend is that the daily stochastic has indicated an overbought condition of the currency pair. Sellers may emerge to push prices down. The RSI has indicated that pair has not enough room to rally on the upside.
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