EUR/JPY Long-Term Analysis: Ranging
EUR/JPY pair is in a sideways trend but unable to breach 134.00 high. The currency pair has rallied to level 134.00 in May. Buyers could not continue the upward move as the market reached the overbought region. The market declined to level 128.00 and resumed a fresh uptrend. In the second uptrend, on October 18, buyers were repelled at the 134.00 overhead resistance. The pair fell to the same support level. Today, a fresh uptrend has begun, probably to retest the 134.00 overhead resistance.
Technical indicators:
Major Resistance Levels – 133.00, 134.000, 135.000
Major Support Levels – 128.000, 127.000, 126.000
EUR/JPY Indicator Analysis
The recent uptrend has pushed the pair to level 55 of the Relative Strength Index for period 14. It indicates that the pair is in the uptrend zone and above the centerline 50. There is a tendency for a further upward move. The index price is above the 21-day SMA and the 50-day SMA which indicates that the market will rise on the upside. The 21-day SMA and the 50-day SMA are sloping upward. EUR/JPY is below the 80% range of the daily stochastic. The uptrend is currently facing a minor retracement.
What Is the Next Direction for EUR/JPY?
On the 4-hour chart, EUR/JPY is in a smooth uptrend but unable to breach 134.00 high. The currency price is making a series of higher highs and higher lows. The pair is currently making a higher low. The uptrend will resume if price finds support above the 21-day line moving average. However, an uptrend is likely to be terminated if price breaks below the bullish trend line.
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