EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair has resumed an uptrend after three months of a sideways trend. The bulls broke above the resistance at level 131.00 and closed above it. This bullish momentum is likely to extend to the high of level 134.00. However, the price indicator has indicated that EUR/JPY is at level 67 of the RSI period 14. Therefore the current upward move is likely to be short-lived. The market will reach the overbought region at level 70 . Meanwhile, the pair will continue to rise as long as the price bars are above the moving averages.
EUR/JPY Indicator Analysis
The market has risen to level 67 of the Relative Strength Index period 14. It indicates that the pair is approaching the overbought region of the market. The 21-day SMA and the 50-day SMA are sloping upward. EUR/JPY is above the 80% range of the daily stochastic. It indicates that the market has reached the overbought region of the market.
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 is in an upward move. The price broke the initial resistance at 130.00 to resume the upward momentum. Meanwhile, on October 11 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise but reverse at level 1.272 Fibonacci extension or level 131.75.
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