Euro Price Outlook: EUR/JPY Trading in a Sideways Pattern - 122.52 Remains Key
EUR/JPY Price Outlook
EUR/JPY– Higher but Without Momentum
On June 21, EUR/JPY rebounded from 120.95 and started to trade higher. The buyers showed on Wednesday more power and sent the price to close above 122.52.
On Wednesday also, the Relative Strength Index (RSI) pointed higher breaking above 50 showing the buyer’s intention to start an uptrend, however; the oscillator remained flat after, indicating the uptrend’s lack of impulse.
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EUR/JPY DAILY PRICE CHART (NOV10, 2016 – JUl 1, 2019) Zoomed OUT
EUR/JPY DAILY PRICE CHART (Mar 7, 2019- JUL 1, 2019) Zoomed IN
Looking at the daily chart we notice EUR/JPY opened today with an upward gap at 123.34 printing its highest levels in nearly six weeks, also breaking above the neckline of the double bottom pattern located at 123.18, however; the price slipped back and closed the gap.
On Friday, EUR/JPY closed the weekly session above 122.52 moving to the higher trading zone 122.52 – 124.40. The price could rally towards the higher end of this zone as long as it remains above 122.52 although, the weekly resistance levels underlined on the chart needs to be watched closely. See the chart for to know more about the next trading zones and the resistances if the price closes above 124.40.
On the other hand, a close below the lower end of the aforementioned trading zone might see the price even lower towards 121.25. The weekly support levels highlighted on the chart would be worth monitoring.
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EUR/JPY Four-HOUR PRICE CHART (June 3, 2019 – JUL 1, 2019)
Looking at the daily chart we notice on June 21 EUR/JPY rebounded then started an upward trend creating higher highs with higher lows. A continuation of this uptrend may require a break above the May 21 peak at 123.75, this might cause the price to rally towards 38.2% Fibonacci retracement at 123.25. However, the daily resistance underlined on the chart should be considered. See the chart find out more about more about the key levels if the price breaks above mentioned levels.
The pair might correct lower if breaks below 23.6% Fibonacci retracement at 122.15 this could send the price towards the June 25 low 121.65 although the daily support marked on the chart needs to be considered. See the chart if the selloff continues below the aforementioned mentioned low.
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.