The EURJPY pair is one pair that sees significant swings and is also an instrument through which many traders express their view on risk.
Risk-on conditions usually favor the euro while risk-off favors the yen.
Following a double bottom on October 8 and October 9 around the 131.15 area, a strong move higher occurred, which took the pair to its current level of 134 yen. This move higher formed an uptrend, which links the lows formed on October 9 and October 15.
The October 15 low of 132.6 is also the key support area of the current uptrend. A break of that level would cancel the uptrend on the 4-hourly chart.
The next target in this move higher is the one-month high of September 20 around 134.72, which should present an area of resistance. The road between 133.9 and 134.7 looks relatively clear on the 4-hourly chart.
The RSI is approaching, but has not yet crossed into, overbought territory at 62. One interesting point to note is that there is potential divergence between the RSI and the move in the underlying as the RSI has not really made new highs together with the new highs of the underlying price during the last few days.
The EURJPY pair is one pair that sees significant swings and is also an instrument through which many traders express their view on risk.
Risk-on conditions usually favor the euro while risk-off favors the yen.
Following a double bottom on October 8 and October 9 around the 131.15 area, a strong move higher occurred, which took the pair to its current level of 134 yen. This move higher formed an uptrend, which links the lows formed on October 9 and October 15.
The October 15 low of 132.6 is also the key support area of the current uptrend. A break of that level would cancel the uptrend on the 4-hourly chart.
The next target in this move higher is the one-month high of September 20 around 134.72, which should present an area of resistance. The road between 133.9 and 134.7 looks relatively clear on the 4-hourly chart.
The RSI is approaching, but has not yet crossed into, overbought territory at 62. One interesting point to note is that there is potential divergence between the RSI and the move in the underlying as the RSI has not really made new highs together with the new highs of the underlying price during the last few days.
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