EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair is in an uptrend as it reaches the high of level 140.27. The Yen has risen to an overbought region of the market. Meanwhile, on March 28 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise to level 1.272 Fibonacci extension or level 140.62. From the price action, the Yen has reached the Fibonacci extension and may break above it.
Technical indicators:
Major Resistance Levels – 133.00, 134.000, 135.000
Major Support Levels – 128.000, 127.000, 126.000
EUR/JPY Indicator Analysis
The Yen is at level 66 of the Relative Strength Index for period 14. The pair will reach the overbought region at level 70. It is in the bullish trend zone and capable of a further upward move. The price bars are above the moving averages indicating that the Yen will rise. Also, it is above the 80% range of the daily stochastic. The Yen has reached the overbought region as per the daily stochastic.
What Is the Next Direction for EUR/JPY?
Since May 12, EUR/JPY has been in an upward move as it reaches the high of level 140.27. The Yen price has been making a series of higher highs and higher lows. The currency pair has risen to the high of level 140.14. The current uptrend may terminate if the Yen reaches an overbought region of the market. In other words, the uptrend will terminate if price breaks below the moving averages or the trend line.
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