EUR/JPY Price Analysis – August 24
In case the bulls increase their pressure, the resistance level of $129 may be broken up and the bullish momentum may extend to the $130 price level.
EUR/JPY Long-term Trend: Bearish (Daily Chart)
Resistance Levels: $130.5, $131.0, $131.5
Support Levels: $128.0, $127.5, $127.0
On the long-term outlook, EUR/JPY is bearish and it has been following the downward movement since June 1. However, should the bulls push up the pair and break up the $129 level with the bullish candle close above the 9-day moving average, then the price could target the $129.5 level. Meanwhile, in case the bears continue to defend the resistance level of $128.8, the price may return to the $128.5 level.
EUR/JPY Price Analysis: EUR/JPY Not Yet Ready for The Upside
EUR/JPY is currently trading at $128.9 after touching the daily high of $129 and there is a tendency that the bullish movement may continue after this pullback because the week may close with a strong bullish candle. At the time of writing, EUR/JPY is trying to penetrate and cross above the upper boundary of the channel as it is already trading above the 9-day MA which suggests an increase in the bullish movement.
Nevertheless, the technical indicator shows that the Relative Strength Index (14) is seen moving above 40-level with the signal line pointing up to indicates a buy signal. In case the daily bullish candle closes above the upper boundary of the channel, then the bullish movement may continue towards the potential resistance levels at $130.5, $131.0, and $131.5.
In addition, any further bearish movement below the 9-day moving average could expose the currency pair towards the lower boundary of the channel. However, there is a high possibility that the market price may cross below this MA and locate the critical supports at $128.0, $127.5, and $127.0.
EUR/JPY Medium-term Trend: Bearish (4H Chart)
EUR/JPY is Bearish on the short-term outlook. There has been a bullish breakout towards the upper trend line of the descending channel. The price increased further towards the resistance level of $130 but it may likely retest the dynamic support level of $128.5 and below if it crosses below the 21-day moving average.
On the contrary, as the technical indicator Relative Strength Index (14) is facing the north, the signal line may likely cross above 60-level and the resistance level of $129.5 and above may be located.