EUR/JPY Long-Term Analysis: Bullish
EUR/JPY has resumed an upward move after a downtrend. A candle body tested the 61.8% Fibonacci retracement level. It indicates that the pair will fall at level 1.618 Fibonacci retracement level or level 127.65. The currency pair has reversed after reaching level 128.00. Since August 20, the pair has been in an uptrend. The bullish momentum has broken above the moving averages suggesting a further upward movement of the currency pair. The market will rise and retest the high of level 134.00 but will face resistance at level 132.00.
EUR/JPY Indicator Analysis
The pair is at level 58 of the Relative Strength Index period 14. It indicates that the market is in the uptrend zone above the centerline 50. The 21-day and 50-day SMA are sloping downward indicating the downtrend. The market is above the 80% range of the daily stochastic. It indicates that the currency pair has reached the overbought region.
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 currency pair is in a smooth uptrend. The currency price is making a series of higher highs and higher lows. The uptrend is approaching the overbought region of the market. Sellers may emerge in the overbought region to push prices down. However, in a strong trending market, the overbought condition may not hold.
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