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 125.00 major psychological handle, which is right smack at a previous resistance level on the daily time frame. Bulls are making successively higher highs and higher lows and heading north side. Well the way bulls are reacting it seems they are not ready to stop in early phase and they will make a new target. Recently bulls breached out the 200 SMA line on weekly chart which can’t be taken as granted.
Technical Analysis: – Bulls are rocking since last 4 consecutive weeks which shows that momentum is in favor of bulls and 125 level is the last acid test for bulls. If bulls trades and settles above this level then we may see further buying till 130 level. 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 need a clearance of 125.00 level is must. The short term to intermediate term trend is mildly bullish however some correction can be seen which we can’t ignore.
The RSI indicator is favoring the bulls and MACD lines are also providing us bullish signal. A daily closing above 125 level will open the way towards the 127 and 130 level. On contrary a daily closing below 123 level will change the outlook from bullish to bearish. The 123 level is immediate support level followed by 121 level where as 127 level is key resistance level followed by 130 level.
Trade idea:– based on chart and studies above we can say that one can go for buy 124.50 level target is 126.00 and 127.50 and 130 level with the tight stop loss of 122.50.00 level.
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