Overview:- The yen is throwing major pip vibes today as we should take a look at ERU/JPY pair. The pair is knocking on the 121.00 major psychological handle, which is right smack at a previous resistance level on the daily time frame. Not only has that, but it also currently lined up with a 200 SMA retest.
Euro bulls have yet to show strength, though, so it’s possible that the current bullish momentum would break above the 121.00 level that we’re watching. If EUR/JPY breaks above 121.00, then we could be looking at a move towards the 122.50 previous area of interest. If the euro does find resistance at 121.00, however, then euro bears can target the 119.00 level.
Technical Analysis: – After arriving near to 120 level we are watching a demand pressure as 200 SMA and 50 EMA line both are lying over there and by applying Fibonacci retracement line from 114.30 level to 124.40 level we can see that pair has retraced 50% Fibonacci level and from bulls are again taking the charge, however we will get further bullish confirmation above 121 level. A valid sustainability above 121 level will open the way towards the 122.50 and 124 level in near term.
Well the way bulls are reacting it seems like they are approaching the 122.50 level. The recent massive bullish storm is generating further bullish signal and the current bullish vibes will not allow the bears at any cost for the time being. A recent candle is bullish marabuzo candlestick which is providing us further bullish signal and suggesting us that further buying is still on the cards we a clearance of 121.00 level is must.
Overall pair is trading above the major and minor EMA lines which is itself a bullish signal. The short term trend is mildly bullish and suggesting us to keep close eyes on the pair as this week FOMC is also awaited. Short term to the intermediate-term trend is up so better to buy on dips as long as 119 level remains intact on closing basis.
The RSI indicator is favoring the bulls and MACD lines are also providing us bullish signal. On contrary a daily closing below 119 level will change the outlook from bullish to bearish. The 119.50 level is immediate support level followed by 119 level where as 121 level is key resistance level followed by 121.50 level.
Trade idea:– based on chart and studies above we can say that one can go for buy 120.50-60 level target is 122.00 and 122.50 level with the tight stop loss of 119.00 level.
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