Technical Analysis – EURJPY holds a bull flag near key resistance area
Posted on October 10, 2019 at 10:27 am GMT
Christina Parthenidou, XM Investment Research Desk
EURJPY picked up steam on Thursday and hit two-week highs above the Ichimoku cloud in the four-hour chart, with the positive momentum in the RSI and the MACD painting a bright picture for the short-term.
The area around 118.43, where the 38.2% Fibonacci of the upleg from 115.85 to 120.00 lies, is currently blocking the bullish action. If this resistance holds, the rally may take a breather around the 118.60 barrier before heading up to the 119.00 level and the 23.6% Fibonacci.
Failure to overcome the 118.43 resistance may put the bears in charge, shifting the spotlight to the 117.74-17.50 restrictive zone. Should sellers persist, with the price falling under the 117.00 support level too, the bearish action could gain extra legs, probably until 116.50.
Summarizing, positive vibes seem to be rising in the EURJPY market. Yet it remains to be seen whether buyers have enough strength to overcome the 118.43-118.60 resistance region.