Eurjpy Analysis – Technicals and trade setup
EUR/JPY rallies probably to drag as bulls breach at stiff resistance but major trend seems to be in consolidation phase with no substantiation: Bulls manage to break out above resistance of 116.250, Current upswings consistently well above DMAs. Rallies probably to extend upon breach and sustenance above 117.704. Currently, on daily plotting RSI (14) converging above sixty seven levels on daily (while articulating). while a virus crossover even above-overbought zones signal the intense buying momentum, as a result bulls would be gaining traction in their buying interest amid rising prices.
Well, on the contrary, the present upswings in major trend (see monthly charting) check strong support at 113.401 but below EMAs and major downtrend drifting into sideways. This pair is bullish bias in brief run but looks to have given up the momentum in recent gains at resistances at seven & twenty one EMAs to push further downside. *If you’ve got to consider the leading and lagging indicators on monthly plotting, the pair is still steaming up with heaps of other bearish indications.
As stated earlier in our long-term analysis, it can’t be deemed as the reversal pattern as the trend goes in consolidation phase from last 4-5 months, wait for the better clarity from the technical indicators to signal the long term trend reversal. MACD and moving averages ar indicative of the bear trend to prolong. the most probable scenario would be that it may retest recent lows of 120.478 levels in short run but may continue the bearish streaks. Trade tips: As a result of above technical reasoning, on speculative grounds we see one touch binary calls for targets of 117.996 levels. This strategy is probably going to fetch leveraged yields than spot FX and mind it this can be only for an intraday trading perspective, but in long run, this is certainly not yet a perfect time for fresh longs.