The Euro
versus the Yen has been trending upwards in a sustainable manner as shown on
the daily chart. The rally on the EUR/JPY has been caused mostly by weakness on
the Yen and not as much by strength on the Euro. The bullish momentum has taken
the pair to the 134.00 level, which could act as resistance, due to the fact
that the round number levels usually act as support or resistance areas. The
rally on the EUR/JPY has also caused the stochastics indicator to enter the
overbought zone, therefore it is possible to see a bearish correction on the
pair. If the EUR/JPY bounces to the downside, then the 132.00 level could act
as support. On the other hand, the bullish trend is still in place and the pair
may try to break above the 134.00 level and maybe reach the 135.00 level.
It could be a good turning point.
ReplyDeleteI completely agree with your analysis.
ReplyDeleteLet's see whether it will break out above 134.00.
ReplyDeleteEnjoyed the article, thank you.
ReplyDeleteIt may have found some resistance
ReplyDeleteGreat review!
ReplyDeleteExcellent information to keep in mind.
ReplyDeleteExcellent analysis as usual!
ReplyDeleteThe pair remains positive.
ReplyDelete