EUR/JPY: Bulls are playing at front foot with rounding bottom pattern.

Overview:- By analyzing the daily technical chart one can see that pair is heading towards north side. Well after making a low of 115.85 level we have witnessed a counter attack from bull’s campaign where bulls marked a high of 120 level but there bulls could not sustain and again bears took the charge and pushed the pair at downside and they took the pair at 117 level and then again it pushed it north side and presently trading at 122.60 level.

In our previous report also we mentioned to long the pair at 120 level for the target of 122 and 123 level with the strict stop loss of 118 level and we are hoping that our readers must have made profit from this move.

Technical Analysis: – From technical prospective we can see a uptrend line has been formed on the daily chart and pair is trading and sustaining above this mentioned line which is providing demand pressure. As we can see a very balanced demand and supply is going on with upside risk. The pair is rising up with the formation of bullish marabuzo candlestick followed by bullish engulfing candlestick pattern which is providing us further bullish signal. The Bollinger band indicates that pair is rising up between the upper band and middle line which suggests the bias still remains with bulls as long as lower band remains intact. The Parabolic SAR dots are green initially when bulls are leading.

The pair is making successively higher highs and higher lows on by taking the demand pressure from the uptrend line. A uptrend line on the daily chart which is suggesting us that bulls are heading north side and providing us upside pressure. Presently it is trading and sustaining above the crossed moving average lines.

Odds are in favor of bulls. Intraday bias remains bullish on the pair. The short term to intermediate picture is mildly bullish. Short term to intermediate term trend is up so in a uptrend market buy on dips will be profitable strategy.

 

The RSI indicator is favoring the bulls and MACD lines are also providing us bullish signal. A daily closing above 123 level will open the way towards the 125 and 127 level. On contrary a daily closing below 120 level will change the outlook from bullish to bearish.

Trade idea:– based on chart and studies above we can say that one can go for long at 122.60 level target is 125.00 and 127.00 level with the tight stop loss of 120.00 level. The 120 level is immediate support level followed by 118 level where as 125 level is key resistance level followed by 127 level.



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