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Technical Analysis – EUR/JPY

EUR/JPY 02/05/2018 | EconAlerts


EUR/JPY runs above 38.2% Fibonacci mark after creating bearish correction in near term.

EUR/JPY is trading higher snapping five consecutive negative days in the short-term after it reached a three-week low of 131.60 during yesterday’s session. Furthermore, prices today successfully surpassed the 38.2% Fibonacci retracement level of 131.74 of the up-leg from 128.93 to 133.50. A bullish pullback is expected further supported by the technical indicators.

Short-term momentum indicators are also pointing up for a creation of a bullish bias. The RSI indicator is turning positive in the negative zone, while the MACD oscillator is trying for a positive cross with the trigger line in the bearish area as well.

The price touched the mid-level of the Bollinger Band (20-SMA) over the last hours returning some gains. However, a climb above this obstacle could extend gains towards the upper Bollinger Band, which coincides with the 23.6% Fibonacci mark of 132.40 before hitting the 135.50 strong resistance barrier. A break above these barriers would shift the short-term bearish mode to a more bullish one as it would take the pair towards the 133.30 resistance.

Conversely, a resumption of the bearish correction in the 4-hour chart could drive the price below the 131.60 low until the 50.0% Fibonacci around 131.20. Further losses should see the 131.05 support taken from the troughs at the beginning of April.

EUR/JPY 02/05/2018 | EconAlerts

 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

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