EUR/JPY bounces off short term support
As the Euro bounced off the long term ascending channel pattern’s upper trend line against the Japanese Yen, it began a decline, which stopped at the middle of Thursday’s trading session. The rate rebounded against the lower trend line of the short term ascending channel pattern, which was supported by the 55-hour SMA and the weekly R1 near the 130.80 mark.
Due to the before mentioned bounce off from the long term resistance, it can be expected that the currency exchange rate will pass the junior pattern’s support. However, as the rebound recently occurred, it is quite possible that the rate will go for a reconfirmation of the dominant trend line. The reason for this hypothesis is that the range up to the 131.50 mark is free from notable resistance levels.
Due to the before mentioned bounce off from the long term resistance, it can be expected that the currency exchange rate will pass the junior pattern’s support. However, as the rebound recently occurred, it is quite possible that the rate will go for a reconfirmation of the dominant trend line. The reason for this hypothesis is that the range up to the 131.50 mark is free from notable resistance levels.
As it was expected, the common European currency passed the junior support of the previously active ascending channel pattern against the Japanese Yen.
Moreover, the currency exchange rate has revealed the new medium term pattern, which is most likely going to last the next two trading sessions. The rate has revealed a descending channel pattern, which will guide the rate lower in the medium term.
However, before it reaches the support line of the dominant pattern, the rate will face the support of the 100-hour SMA, which has prepped up higher the rate already twice. In addition, the 200-hour SMA was located at the 130.40 mark during the second half of Friday’s trading, as it prepared to provide support to the Euro in the near future.