Technical Analysis: Outlook 2018 – EURJPY had a bullish year; upward sloping channel in progess
January 4, 2018 3:25 pm
EURJPY surged almost 10% in the previous year and posted eight bullish months out of 12. The latest upward run started following the bounce off the 114.65 significant support level and drove the pair to a three-year high of 135.50 in December.
The next resistance level to watch is the 141.10 barrier, which is the highest since June 2015. If the price keeps trading above the 50-month simple moving average, we could see a positive bigger picture. A decisive break below the 124.20 level, which coincides with the 200-month SMA could set the stage for a downside move, perhaps towards the support at 114.65, defined by the low of April 2017.
Remaining in the very long-term timeframe, the RSI indicator is rising in the positive territory and the MACD oscillator is strengthening its bullish momentum as it is rising and stands above the trigger and zero lines.
Having a look at the weekly timeframe, EURJPY is developing within an upward sloping channel since July 2016, with an exception in April 2017, where the price temporarily breached the lower band of the channel.
Technically, the RSI indicator is moving north near the 70 level, whilst the MACD oscillator is rising gently but is still below the trigger line. Also, the 50-week SMA printed a bullish crossover with the 100-week SMA in September 2017 indicating further gains in the medium to long run.
EURJPY surged almost 10% in the previous year and posted eight bullish months out of 12. The latest upward run started following the bounce off the 114.65 significant support level and drove the pair to a three-year high of 135.50 in December.
The next resistance level to watch is the 141.10 barrier, which is the highest since June 2015. If the price keeps trading above the 50-month simple moving average, we could see a positive bigger picture. A decisive break below the 124.20 level, which coincides with the 200-month SMA could set the stage for a downside move, perhaps towards the support at 114.65, defined by the low of April 2017.
Remaining in the very long-term timeframe, the RSI indicator is rising in the positive territory and the MACD oscillator is strengthening its bullish momentum as it is rising and stands above the trigger and zero lines.
Having a look at the weekly timeframe, EURJPY is developing within an upward sloping channel since July 2016, with an exception in April 2017, where the price temporarily breached the lower band of the channel.
Technically, the RSI indicator is moving north near the 70 level, whilst the MACD oscillator is rising gently but is still below the trigger line. Also, the 50-week SMA printed a bullish crossover with the 100-week SMA in September 2017 indicating further gains in the medium to long run.
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