Technical Analysis – EURJPY set for recovery after meeting familiar support area
May 27, 2021 11:26 am
EURJPY came under selling pressure following the peak at 133.59 – the highest since February 2018 – earlier this week, but the upper boundary of the Ichimoku cloud on the four-hour chart managed to add strong footing again, pushing the price slightly above its short-term simple moving averages (SMAs).
The short-term bias is currently looking neutral-to-bullish as the Stochastics have bottomed in the oversold area and are shifting upwards again, while the RSI is trying to regain ground after refusing to dip below its 50 neutral level.
Should the bulls gear above the 133.59 top, they would push for a close above the 134.35 resistance region last seen during the 2018 – 2017 period. A violation at this point could bolster the rally towards the 135.60 barrier.
Alternatively, a drop below the 132.95 level may lead the price till to the cloud’s lower band at 132.53. Failure to hold above that bar could reinforce another bearish correction towards the 132.00 number, where any step lower would put the upward pattern in jeopardy.
In brief, EURJPY could resume its positive momentum in the near term with scope to re-challenge its previous highs. Any push higher would upgrade the positive outlook in the market.
EURJPY came under selling pressure following the peak at 133.59 – the highest since February 2018 – earlier this week, but the upper boundary of the Ichimoku cloud on the four-hour chart managed to add strong footing again, pushing the price slightly above its short-term simple moving averages (SMAs).
The short-term bias is currently looking neutral-to-bullish as the Stochastics have bottomed in the oversold area and are shifting upwards again, while the RSI is trying to regain ground after refusing to dip below its 50 neutral level.
Should the bulls gear above the 133.59 top, they would push for a close above the 134.35 resistance region last seen during the 2018 – 2017 period. A violation at this point could bolster the rally towards the 135.60 barrier.
Alternatively, a drop below the 132.95 level may lead the price till to the cloud’s lower band at 132.53. Failure to hold above that bar could reinforce another bearish correction towards the 132.00 number, where any step lower would put the upward pattern in jeopardy.
In brief, EURJPY could resume its positive momentum in the near term with scope to re-challenge its previous highs. Any push higher would upgrade the positive outlook in the market.
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