Will EUR/JPY Continue Trending Higher?

has been in a sliding mode since Thursday. Today, the pair opened with a negative gap, but hit support near 129.15, and then it rebounded somewhat. Overall, the rate continues to trade above the upside support line drawn from the low of Jan. 18, but before we start considering the continuation of the prevailing uptrend, we would like to see a clear break above 130.00. For now, we will stay cautiously positive.

A clear and decisive break above 130.00 may signal that the latest retreat is over and that the next wave may be in the direction of the prevailing uptrend. The bulls may get encouraged to target Thursday’s peak at 130.65, the break of which will take the rate into territories last tested in October 2018. The next resistance may be the high of the 18th of that month, at around 131.25.

Looking at our short-term oscillators, we see that the RSI rebounded from near its 30 line and now looks to be headed towards 50, while the MACD, although below both its zero and trigger lines, has bottomed as well. Both indicators detect slowing downside speed, suggesting that the latest corrective setback may be over.

In order to start examining a bearish reversal, we would like to see a strong dip below the 128.77 zone, and the aforementioned upside support line. We could then see the pair diving towards the 128.20 hurdle, which provided support on Mar. 1 and 2, and also acted as a resistance on Feb. 19 and 22. The bears may decide to take a break after testing that zone, thereby allowing a small rebound. However, as long as the rate would stay below the upside line, we would see decent chances for another leg south and perhaps a break below 128.20. This may pave the way towards the low of Feb. 22, at 127.50.

EUR/JPY 4-hour chart technical analysis

EUR/JPY 4-hour chart technical analysis

Disclaimer: The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval. 79.07% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure – https://www.jfdbrokers.com/en/legal/risk-disclosure .

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.