Overview: This is the Forex quote for Euro vs. Japanese Yen exchange rate. EUR (the ‘base currency’) is quoted in terms of JPY (the ‘counter currency’). The Yen is a historically low-yielding currency, making an attractive vehicle to fund carry trades (where traders borrow cheaply in JPY to buy higher-yielding currencies, including EUR. Investors tend to favor carry trades at times of optimism about global economic performance and stability; they shun them at times of market stress. The common European currency surged by 50 pips or 0.40% against the Japanese Yen on Wednesday.
The currency pair tested the weekly R3 at 126.53 during yesterday’s trading session. The pair is creating higher highs and ready to set for the bullish momentum in the market. The bulls are forcing the market towards a higher rise and ready to create positive volatility in the market. Currently, the market is trading at 126.18 level in the market. the channel is creating a positive channel and could drive the market towards a higher exchange rate level. Euro is up across the board.
Technical Analysis: A new month brings new fortunes. The EURO is starting off December on a strong footing, with all EUR-crosses rallying thus far on December 1. The pair is creating bullish signals this time. The momentum of the indicators remains bullish side and supporting the price pattern in the chart. On the daily chat the major EMA lines are trading above the SMA lines .so we suggest our buyers to set for the buy-side for a short time frame. On the 4 hourly chart market is about to take the pair towards the higher side the RSI is also above the 50 lines and again ready to rise. So, we can suggest our buyers to set for side. Daily MACD is trending higher above its signal line. The market will rise above resistance line 127.12 as its top in the next coming week. The support level of the pair is 125.09 followed by 123.60and the resistance is 127.41 followed by 128.90.
Trade Idea : Based on the chart and studies above we would suggest that buy on 126.23 target level will be 127.73 followed by 128.60 and the stop loss will be124.91
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