EUR/JPY Price Analysis – September 28
There is a tendency that the bullish movement may continue to hold after the pullback because the currency pair may close with a strong bullish candle.
EUR/JPY Long-term Trend: Bearish (Daily Chart)
Resistance Levels: $131.5, $132.0, $132.5
Support Levels: $129.0, $128.5, $128.0
On the long-term outlook, EUR/JPY is bullish and it has been following the upward movement since September 22. However, should the bulls push up the currency pair and break above the $130.5 level with the bullish candle close above the upper boundary of the channel, then the price could target the $131.0 level. Meanwhile, in case the bears drag the market price below the 21-day moving average, EUR/JPY may return to the support level of $128.0 level.
EUR/JPY Price Analysis: Would EUR/JPY Climb to the Upside?
EUR/JPY is currently trading at $130.3 as the currency pair moves to cross above the upper boundary of the channel. However, there is a tendency that the bullish movement may continue to hold after the pullback because the currency pair may close with a strong bullish candle. However, EUR/JPY is making an attempt to penetrate the upper boundary of the channel and it is trading above the 9-day and 21-day moving averages which connote an increase in the bullish momentum.
Meanwhile, the technical indicator Relative Strength Index (14) is seen moving to cross above 60-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 reach the potential resistance levels at $131.5, $132.0, and $132.5.
Moreover, any bearish movement below the 9-day and 21-day moving averages may expose the currency pair towards the lower boundary of the channel. Therefore, there is a high possibility that the market price may cross below this barrier to locate the critical supports at $129.0, $128.5, and $128.0.
EUR/JPY Medium-term Trend: Bullish (4H Chart)
EUR/JPY is Bullish on the short-term outlook. There has been a bullish breakout towards the upper boundary of the channel. Therefore, the currency pair increases further towards the resistance level of $130.5. More so, the bullish momentum breaks up the level and keep the pair above the 9-day and 21-day moving averages. Meanwhile, the price may likely hit the potential resistance level of $131.0 and above as the technical indicator Relative Strength Index (14) moves to cross into the overbought region while the support levels are located at $129.8 and below.