EUR/JPY Long-Term Analysis: Bullish
Since October 21, the EUR/JPY pair has been retracing after rejection from the high of level 133.00. The pair retraced to the low of level 131.86 and resumed consolidation above the current support. Since October 25, the market has been consolidating above it. The selling pressure has subsided as the market fluctuates above level 131.86 price level. A new uptrend is likely to resume.
EUR/JPY Indicator Analysis
EUR/JPY is at level 57 of the Relative Strength Index period 14. It indicates that the pair is in the bullish trend zone as it is capable of a further upward move. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. EUR/JPY is above the 25% range of the daily stochastic. The stochastic bands are sloping horizontally indicating the sideways move.
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 downward move. The selling pressure has been exhausted as the market resumes sideways move above the current support. Meanwhile, on October 20 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY price will fall to level 2.0 Fibonacci extension or level 131.99. From the price action, the pair has tested the Fibonacci level and it is fluctuating above it.
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