EMAs confluence on the EUR/JPY

The exponential moving averages or EMAs may act as very good support or resistance zones, especially in areas where they coincide on different time frames. For example, on the daily chart of the EUR/JPY we can see that the 55 day EMA (purple line) is at the 129.84 level and exactly in that same area is where the 55 week EMA is located. That is why it is of no surprise to see the price of the EUR/JPY stall at that zone and it may even try to bounce to the upside. The current drop on the pair is really a correction from a bullish trend in the midterm. If the price bounces to the upside from the 55 day EMA, then the 200 day EMA (blue line) may act as a temporary resistance. On the other hand, if the EUR/JPY breaks below the 55 day EMA, its next support could be the 127.98 level where we can find its 200 week EMA. On the daily chart we can also see that the most relevant support is at the 125.00 round number level.