EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair is in an uptrend as it consolidates above 137.00. The current uptrend reached the high of level 140.24 and reversed. The Yen declined to level 78.6% Fibonacci retracement level or 135.30. After the retracement, the currency pair resumed consolidation above the 21-day line moving average. The uptrend will commence if price remains above the moving averages. The downtrend will resume if the bears break below the moving averages. In the meantime, EUR/JPY is in a range-bound move above the moving averages
EUR/JPY Indicator Analysis
The currency pair is at level 56 of the Relative Strength Index for period 14. It is in the uptrend zone and capable of a further upward move. The pair is below the 80% range of the daily stochastic. It indicates that the market is in a bearish momentum. The 21-day line SMA and 50-day line SMA are sloping upward indicating the uptrend.
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 a sideways move below level 138.00 resistance level as it consolidates above 137.00. Since April 28, the uptrend is stuck below level 138.00. The sideways move is characterized by small body candlesticks called Doji. These candlesticks indicate that buyers and sellers are undecided about the direction of the market.
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