EUR/JPY Eying the Higher End of the Current Trading Range
EUR/JPY Price Outlook, Charts and Analysis
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EUR/JPY– Changing Course
On Jun 6, EUR/JPY corrected higher after carving out a higher low at 121.24. On the following day the pair rallied and closed within a higher trading range (122.50 – 124.20).
The Relative Strength Index (RSI) abandoned on Jun 3, the oversold area highlighting bearish momentum might be nearing its final stage . The oscillator pointed higher on the following days and crossed above 50 today reflecting a possible start of an uptrend.
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EUR/JPY DAILY PRICE CHART (FEB 19, 2019- JUN 3, 2019) Zoomed IN
EUR/JPY DAILY PRICE CHART (NOV 16, 2016 - JUN 11, 2019) Zoomed OUT
Looking at the daily chart we notice on June 7 EUR/JPY broke above the downtrend line originated from the May 1 high at 125.23. The price closed and traded above the downtrend line hinting at a rally towards the higher end of the trading range shown above, see the chart. The weekly resistance levels at 123.40 and the May 21 high at 123.75 need to be kept in focus.
In turn, a close below 122.50 would mean more bearishness and could send the price lower towards 121.30. Although, the supports levels at 23.60% Fibonacci retracement at 122.15, 122.00 and 121.49 should be watched closely.
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EUR/JPY Four-HOUR PRICE CHART (May 7 – JUNE 11, 2019)
Looking at the four-hour chart, we notice EUR/JPY rebounded from 122.62 yesterday and today. Therefore, any break below this level could start a movement to send the price towards 122.10 contingent on breaking below 122.50. The support level at 122.27 needs to be considered.
On the flipside, any break above 123.10 could mean the start of a bullish move towards the May 21 high at 123.75 however, the weekly resistance at 123.40 is worth monitoring.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.