EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in an uptrend as it retests 131.00 overhead resistance. Today, the currency pair has risen and it is retesting the previous resistance level at level 131.00. Nevertheless, if the current bullish momentum is sustained, the Yen will reach the overhead resistance at level 133.00. However, from the price action, the bulls are finding penetration difficult at the overhead resistance. EUR/JPY has reached the overbought region and may decline.
EUR/JPY Indicator Analysis
The currency pair is at level 63 of the Relative Strength Index for period 14. The pair is in the uptrend zone and is capable of rising to the upside. The currency price is above the 21-day SMA and 50-day SMA indicating a further upward movement of the pair. The 21-day SMA and 50-day SMA have been sloping horizontally indicating the sideways trend. EUR/JPY is above the 80% range of the daily stochastic. The pair has reached the overbought region and may soon decline.
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 it retests 131.00 overhead resistance. The pair has risen and reached the overbought region of the market. Meanwhile, on February 1 uptrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise to level 2.0 Fibonacci extension or level 130.72. From the price action, the Yen has broken the Fibonacci extension to reach the high of level 131.50. The market has reached the overbought region.
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