EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair was earlier in an upward move. The uptrend is facing resistance at level 130.00. Today, the currency pair is falling after rejection `from the recent high. The market is likely to decline to the previous low at level 128.00. However, if level 128.00 support is breached, the market will further decline on the downside. Meanwhile, on June 21 downtrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY will fall to level 2.0 Fibonacci extension or level 126.14.
EUR/JPY Indicator Analysis
EUR/JPY is at level 54 of the Relative Strength Index period 14. It indicates that the market is in the uptrend zone above the centerline 50. The 21-day and 50-day SMA are sloping downward indicating the downtrend. The market is below the 20% range of the daily stochastic. It indicates that the currency pair has reached the oversold region.
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 resuming a downward move. The bulls could not break above level 130.00 as the market resumed a downward move. The EUR/JPY price has broken below the moving averages which suggest that the selling may persist. Meanwhile, on September 3 downtrend, a retraced candle body tested the 23.6% Fibonacci retracement level. The retracement indicates that EUR/JPY will fall to level 4.236 Fibonacci extension or level.
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