EUR/JPY Long-Term Analysis: Ranging
EUR/JPY pair is in a sideways trend but resumes upward revisiting 133.00. This is an indication that the market will rise to the previous highs. The currency pair will rise to revisit the previous high of level 133. Since May 2021, the bullish momentum has not been sustained above level 133.00 overhead resistance. Today, buyers are pushing the pair to revisit the previous highs. Meanwhile, EUR/JPY is trading at level 131.41 at the time of writing.
EUR/JPY Indicator Analysis
EUR/JPY has fallen to level 56 of the Relative Strength Index for period 14. The currency pair is still in the bullish trend zone despite the retracement. The market will soon rise to revisit the previous highs. The index price is above the 21-day SMA and the 50-day SMA which indicates that the pair will rise to the upside. The moving averages are sloping horizontally indicating a sideways trend.
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?
In the lower time frame, EUR/JPY is in an uptrend but resumes upward revisiting 133.00. The uptrend was terminated at level 133.00. The currency pair has declined but it is confined in between the moving averages. This indicates that the pair is likely to be range-bound for a few days. Meanwhile, on February 6 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that EUR/JPY will fall but reverse at level 1.272 Fibonacci extension or level 132.93.
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