EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair is fluctuating below the resistance at level 137.54 as targets the high of level 140.00. Since March 28, buyers have not been able to keep the price above the overhead resistance. This is because the currency pair reached the overbought region of the market. Also, the pair has retraced above level 134.51 and resumed consolidation. The pair is likely to resume upward if the current resistance is breached. Meanwhile, on March 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 $140.77.
EUR/JPY Indicator Analysis
EUR/JPY is at level 63 of the Relative Strength Index for period 14. The pair is consolidating above the current support and is capable of a further upward move. The 21-day SMA and 50-day SMA are sloping upward indicating the uptrend. EUR/JPY is above the 50% range of the daily stochastic. It indicates that the market is in a bullish momentum.
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?
EUR/JPY is in an upward move as targets the high of level 140.00. The currency price was earlier making a series of higher highs and higher lows. From the rejection at the overhead resistance, the uptrend has been terminated as the pair resumed a sideways trend. EUR/JPY now fluctuates between levels 134.50 and 138.00. The currency will trend when these levels are breached.
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