EUR/JPY Long-Term Analysis: Ranging
EUR/JPY pair has been fluctuating between levels 128.30 and 130.50 for the past three months. The bears have retested the lower price range on three occasions but were repelled. Buyers have retested the upper price range on three unsuccessful attempts to break above it. Today, the market is resuming upward revisiting the previous highs. The currency pair will resume an uptrend if price breaks above level 130.00.
EUR/JPY Indicator Analysis
EUR/JPY pair is at level 44 of the Relative Strength Index period 14. It indicates that the market is in the downtrend zone and below the centerline 50. The pair is capable of falling on the downside. The pair is above the 25% range of the daily stochastic. It indicates that the market is in a bullish momentum.
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 a downward move as price breaks below the moving averages. The currency pair fell to level 128.45 twice before resuming upward. The pair will resume an uptrend if price breaks above the moving averages. Meanwhile, on October 4 uptrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise to level 2.618 Fibonacci extension or level 130.72.
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