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Technical Analysis – EUR/JPY soars near a 1-month peak

EUR/JPY 17/04/19 | EconAlerts

EUR/JPY soars near a 1-month peak; more gains expected.

EUR/JPY is heading sharply higher over the last 4-hour session, approaching the one-month high of 126.80, first reached on April 15. The successful climb above the 20-simple moving average (SMA) and the red Tenkan-Sen line give the opportunity to traders to think about potential bullish actions in the near term. The RSI is ready to touch the overbought level, while the MACD is on the way to surpass its trigger line.

A close above 126.80 would boost bullish sentiment, shifting attention straight up to a two-and-half-month high of 127.50, identified on March 1. An aggressive rally above the latter could increase buying orders significantly, with resistance coming next from the 128.40 level, registered in December 2018.

In the alternative scenario, a fall below 126.15 and the 23.6% Fibonacci retracement level of the upward move from 123.65 to 126.80 could add more pressure to the market, while a decline below the 38.2% Fibonacci of 125.60 would put the uptrend off 123.65 into question. Traders may also increase their selling positions under 125.00.

In the medium-term timeframe, a strong run above the 127.50 level would put the market back into the bullish mode, while a drop below 123.65 would confirm the start of a bearish phase.


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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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