EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair has resumed an uptrend. The currency pair has broken above the moving averages to reach the high of level 133.48. There was resistance at the recent high as the pair fell to the low of level 131.60. The market is consolidating above the current support for a possible upward move. Meanwhile, on October 20 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that EUR/JPY price will rise but reverse at level 1.272 Fibonacci extension or level 134.79.
EUR/JPY Indicator Analysis
The currency pair is at level 59 of the Relative Strength Index period 14. It indicates that the pair is in the bullish trend zone and has room to rally on the upside. The Yen has a bullish crossover as the 21-day SMA crosses above the 50-day SMA. This indicates a buy signal. The moving averages are sloping upward indicating the uptrend. EUR/JPY is above the 80% range of the daily stochastic. The stochastic bands are sloping downward indicating a possible bearish momentum.
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?
On the 4-hour chart, the pair has been in a sideways move. Since October 21, it has been facing rejection at level 132.80 resistance zone. The pair will resume an uptrend and retest the previous high of level 133.40 if the current resistance is breached. Presently, the market is declining as price reaches the overbought region.
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