EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair is in an uptrend but may rally to level 140.00. Presently, the upward move has been stuck at the resistance of level 137.54. Since March 28, the pair has been fluctuating below the recent high. The Yen will rise if price breaks above the resistance at level 137.54. 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 $141.56.
EUR/JPY Indicator Analysis
EUR/JPY is at level 65 of the Relative Strength Index for period 14. The pair is still in the uptrend zone but approaches the overbought region of the market. The Yen has a bullish crossover. That is, the 21-day line SMA crosses above the 50-day line SMA. . EUR/JPY is above the 80% range of the daily stochastic. It indicates that the market has reached the overbought region. The Yen is likely to fall.
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?
Presently, EUR/JPY is in a sideways trend but may rally to level 140.00. The Yen is fluctuating between levels 134.00 and 137.54. The selling pressure will resume if price breaks below level 134.00. The uptrend will resume if buyers breaks above level 137.54. However, the bullish momentum is likely to reach bullish exhaustion as the market reaches the overbought region.
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