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FxWirePro: EUR/JPY struggles at trendline resistance, overbought conditions will drive minor weakness

EUR/JPY chart - Trading View 

Technical Analysis: Bias Neutral

- EUR/JPY struggles at major resistance at falling trendline support at 126.20

- Analysis of GMMA indicator shows major and minor trend are bullish

- Volatility is high and rising on the daily and weekly charts as evidenced by widening Bollinger bands

- Price action is consolidating previous week's break above 200W MA, which now offers strong support at 125.24

- Overbought conditions for the pair may cause minor pullbacks. Bullish invalidation only below 200W MA

Support levels - 125.24 (200W MA), 124.79 (21-EMA)

Resistance levels - 126.15 (5-DMA), 127 (Psychological mark)

Summary: Breakout above 200W MA in the previous weeks trade has raised scope for further upside in the pair. Price action finds major hurdle at trendline resistance at 126.20, decisive break above will fuel further upside. Next major bull target lies at 61.8% Fib at 128.67. Minor pullbacks likely on account of overbought oscillators. Bullish invalidation only on retrace below 200W MA. 
 

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