the EUR/JPY currency pair based on recent price movements and key support and resistance levels. Here's a breakdown of the analysis:
Recent Price Movement: On Friday, EUR/JPY experienced solid gains of more than 0.90%. This gain was attributed to a sharp rally in EUR/USD, which led EUR/JPY to reach a daily high of 1.0600. As a result, EUR/JPY climbed to a four-day high of 158.26 before retracing slightly to its current exchange rate around 158.05.
Ichimoku Cloud Break: The analysis mentions that EUR/JPY has broken above the Ichimoku Cloud (Kumo), which is typically viewed as a bullish signal in technical analysis. This suggests a positive outlook for the currency pair.
Immediate Resistance Levels: Despite the bullish signal, there is immediate resistance that could limit the Euro's rise. The first resistance level is identified at the October 2 high of 158.47, followed by the September 13 daily high of 158.65. The analysis also mentions the possibility of EUR/JPY challenging the 159.00 level if it aims higher.
Downside Potential: On the downside, if EUR/JPY falls back into the Kumo, it could face downside pressure. The key support levels mentioned are the Senkou Span A at 156.45 and the bottom of the Kumo at 156.49. If these levels are breached, the analysis suggests that the pair could target the October 3 daily/weekly low of 154.34.
In summary, the technical analysis suggests that EUR/JPY is currently experiencing gains and has broken above the Ichimoku Cloud, which is generally seen as a bullish signal. However, it also highlights the importance of key resistance and support levels that could influence the pair's future movements. Traders and investors may use this analysis to make informed decisions regarding their positions in EUR/JPY.
Recent Price Movement: On Friday, EUR/JPY experienced solid gains of more than 0.90%. This gain was attributed to a sharp rally in EUR/USD, which led EUR/JPY to reach a daily high of 1.0600. As a result, EUR/JPY climbed to a four-day high of 158.26 before retracing slightly to its current exchange rate around 158.05.
Ichimoku Cloud Break: The analysis mentions that EUR/JPY has broken above the Ichimoku Cloud (Kumo), which is typically viewed as a bullish signal in technical analysis. This suggests a positive outlook for the currency pair.
Immediate Resistance Levels: Despite the bullish signal, there is immediate resistance that could limit the Euro's rise. The first resistance level is identified at the October 2 high of 158.47, followed by the September 13 daily high of 158.65. The analysis also mentions the possibility of EUR/JPY challenging the 159.00 level if it aims higher.
Downside Potential: On the downside, if EUR/JPY falls back into the Kumo, it could face downside pressure. The key support levels mentioned are the Senkou Span A at 156.45 and the bottom of the Kumo at 156.49. If these levels are breached, the analysis suggests that the pair could target the October 3 daily/weekly low of 154.34.
In summary, the technical analysis suggests that EUR/JPY is currently experiencing gains and has broken above the Ichimoku Cloud, which is generally seen as a bullish signal. However, it also highlights the importance of key resistance and support levels that could influence the pair's future movements. Traders and investors may use this analysis to make informed decisions regarding their positions in EUR/JPY.
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