EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair is in a downward move. The currency pair has fallen to $133.15 low from the high of level 134.00. Since May 27, the uptrend has been terminated. Initially, the market fell to level 132.66 low and pulled back. Today, the market has fallen to retest the previous low. The uptrend will resume if the current support holds. Meanwhile, the pair has been hovering at level 132.00 for the past week.
EUR/JPY Indicator Analysis
EUR/JPY has fallen to level 49 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The 21-day and 50-day SMAs are sloping northward indicating the uptrend. The price bars have broken below the 21-day SMA. A break below the moving averages will compel the pair to fall to the bearish trend zone.
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 pair is in a downward move. On the 4 hour chart, the pair faces rejection at level 133.60. Meanwhile, on June 15 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY will fall to level 2.0 Fibonacci extensions or level 132.62. The market has fallen beyond the Fibonacci level as it approaches the oversold region.
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