Technical Analysis: Bulls Continue To Stay On The EURJPY Throne

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Written By
Contributor Image
Written By
Tran Dai Phat
Tran Dai Phat, a Forex Educator at FXTM with a Bachelor's Degree in Investment, brings multiple years of financial market experience to the aid of aspiring traders everywhere. He conducts research on stocks, forex, and commodities, sharing his insights to empower traders and encourage the development of simple strategies for maximizing trading potential.

The Euro-Yen pair on the Daily Chart has been in an uptrend since 30 October 2020 when it registered the low price at 121.608, and the high price of 126.667 on 4 December.

Indicators Agree

When applying Oscillator Analysis to the price chart, one can see that price is trading above the SMA 60 period Moving Average line, a fact which confirms the EURJPY currency pair’s upward direction.

Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values above the zero line which hints to the bullish bias of the financial instrument.

RSI Over 50

Additionally, the Relative Strength Index (RSI) Oscillator registers values above the fifty line which indicates positive sentiment.

All three technical indicators are in agreement with regards to the upward bias of the pair.

Three price targets may be calculated upon applying the Fibonacci tool to the price chart.

  • The first price target is estimated at 126.534 (161.8%).
  • The second price target is seen at 128.819 (261.8%).
  • The third price target is projected at 132.516 (423.6%).

While the first target has already been breached, the EURJPY pair is currently trading above the uptrend line.

The presence of the Long White Body hints at a potential rally to the upside. Of course, supply and demand as well as the crowd sentiment will determine the future course of EURJPY currency pair.

EURJPY Daily 10 Dec 20

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