EUR/JPY is trading in the green at 132.00 psychological level but further growth is still uncertain. The rate challenges strong immediate resistance levels, so we have to wait for a valid breakout before looking for new long opportunities.
The pair was into a corrective phase but the price action signaled that the downside movement could be over. The Euro tries to appreciate after the Euro-zone Unemployment Rate dropped from 7.5% to 7.4% matching expectations. The Spanish Unemployment Change was reported at -0.7K, while the Italian Monthly Unemployment Rate dropped unexpectedly from 9.3% to 9.2%.
EUR/JPY Technical Analysis!
EUR/JPY is pressuring the 132.08 weekly pivot point and the upper median line of the descending pitchfork. Making a valid breakout through this confluence area could activate further growth.
It has found support at the 38.2% retracement level failing to reach and retest the channel’s downside line. The upside pressure is high after failing to stabilize under 131.57 and after making a bullish engulfing.
A valid breakout through the downtrend line could announce an upside continuation. Jumping and stabilizing above the downtrend line could bring new buying opportunities.
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