EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair has continued to rise since October 7 rebound. The currency pair has reached the high of level 133.34. However, the current uptrend has reached the overbought region of the market. On the upside, if the market reaches a high of level 134.00, it may face stiff resistance. The 134.00 high is the historical price level of May 27. On May 27, the bulls could not breach the resistance level as the pair plunged to level 127.80. Today, EUR/JPY has recovered but it is doubtful if it will scale above the current resistance at level 134.00.
EUR/JPY Indicator Analysis
The currency pair has risen to level 76 of the Relative Strength Index period 14. It indicates that the pair is now in the overbought region of the market. EUR/JPY does not have room to rally on the upside. Sellers are likely to emerge in the overbought region to push prices down. The pair has a bullish crossover. That is, the 21-day SMA crosses above the 50-day SMA indicating a buy signal. EUR/JPY is above the 70% 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 smooth uptrend. The pair reached the high of level 134.46 but retraced to level 132.73 support. The upward move has resumed but may face resistance at level 134.00 as the market reaches the overbought region. A bullish trend line is drawn showing the support levels of price. The current uptrend may terminate if price breaks below the bullish trend line.
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