EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair is in an uptrend. Since May 27, the currency pair has been facing rejection at the 134.00 resistance. The pair retraced to 133.00 low after the rejection. Meanwhile, on May 27 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 extensions or level 136.67. The currency pair has resumed an uptrend above the current support.
EUR/JPY Indicator Analysis
EUR/JPY is at level 61 of the Relative Strength Index period 14. It indicates that the pair is in the uptrend zone and has room to rally on the upside. The 21-day and 50-day SMAs are sloping northward indicating the uptrend; while the price bars are above the SMAs. This suggests that the market is rising.
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?
EUR/JPY pair has resumed upward move. On the 4 hour chart, the pair was consolidating below the 134.00 resistance before the recent downward move. The pair fell to 132.92 low and commenced resumption of an upward move. The current uptrend is approaching the overbought region of the market. Sellers are likely to emerge in the oversold region.
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