The EUR/JPY currency pair, on the H4 time-frame, was in a downward move until the 25th of April when a bottom was registered at 124.092. Buyers found the price attractive and succeeded in halting sellers’ momentum. This was confirmed when the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator pierced the zero baseline.
The possible technical reversal was further strengthened by the crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross, as well as Hammer Candle that formed during the upward move when demand overwhelmed supply.
On the 1st of May a possible critical resistance level formed when a high was registered at 125.242. The bears temporarily pushed the price lower and a bottom formed during the same day at 124.705.
If the price of the EUR/JPY currency pair breaks through the critical resistance level at 125.242, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible move at 125.242 and dragging it to the bottom of the pullback at 124.705, the following targets may be calculated. The first target can be anticipated at 125.573 (161 %). The second price target can be projected at 126.110 (261.8%) and the third and final target may be expected at 126.978 (423.6%).
If the bottom at 124.705 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for EUR/JPY currency pair on the H4 time-frame will remain bullish.
The possible technical reversal was further strengthened by the crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross, as well as Hammer Candle that formed during the upward move when demand overwhelmed supply.
On the 1st of May a possible critical resistance level formed when a high was registered at 125.242. The bears temporarily pushed the price lower and a bottom formed during the same day at 124.705.
If the price of the EUR/JPY currency pair breaks through the critical resistance level at 125.242, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible move at 125.242 and dragging it to the bottom of the pullback at 124.705, the following targets may be calculated. The first target can be anticipated at 125.573 (161 %). The second price target can be projected at 126.110 (261.8%) and the third and final target may be expected at 126.978 (423.6%).
If the bottom at 124.705 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for EUR/JPY currency pair on the H4 time-frame will remain bullish.