Price Action: Today EUR/JPY has reached and rejected the average-price downtrend trendline. At the same time, if we look at the daily timeframe, the price failed to close below the 123.80 support, where previously EUR/JPY rejected the 200 Exponential Moving Average on the 1-hour timeframe.
This means that as long as the daily closing price remains above 123.80, EUR/JPY will likely start moving north. The key resistance is located at 124.44 and is confirmed by two Fibonacci retracement levels. First being the 23.6% Fibs applied to the overall uptrend and 88.6% Fibs applied to the last wave up, when EUR/JPY topped out at 127.07.
The upside target corresponds to the 200 Simple Moving Average, which should be acting as the resistance. At the same time, it corresponds to the uptrend trendline, which might act as the resistance as well, if/when reached.
But there could be more room for growth if this resistance will be penetrated. In this scenario, the price can move up substantially over a long period of time. Regarding the downside risk, spikes below today’s’ low are possible, although daily close below 123.80 and/or 123.57 will completely invalidate the bullish outlook and the downtrend can be expected to continue.
Key support levels: 123.57
Key resistance levels: 124.44
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Happy Trading!
This means that as long as the daily closing price remains above 123.80, EUR/JPY will likely start moving north. The key resistance is located at 124.44 and is confirmed by two Fibonacci retracement levels. First being the 23.6% Fibs applied to the overall uptrend and 88.6% Fibs applied to the last wave up, when EUR/JPY topped out at 127.07.
The upside target corresponds to the 200 Simple Moving Average, which should be acting as the resistance. At the same time, it corresponds to the uptrend trendline, which might act as the resistance as well, if/when reached.
But there could be more room for growth if this resistance will be penetrated. In this scenario, the price can move up substantially over a long period of time. Regarding the downside risk, spikes below today’s’ low are possible, although daily close below 123.80 and/or 123.57 will completely invalidate the bullish outlook and the downtrend can be expected to continue.
Key support levels: 123.57
Key resistance levels: 124.44
Thanks for reading and we appreciate your support.
Happy Trading!