EUR/JPY Rebounds Above 127.40, Attempts to Break Previous Highs

EUR/JPY Significant Levels
Resistance Levels: 0.7400, 0.7600, and 0.7800
Support Levels: 0.7100, 0.6900 and 0.6700

EUR/JPY Price Long-term Trend: Bearish
EUR/JPY is in a downtrend as it attempts to break previous highs.The Yen is approaching the oversold region of the market. Since November 29, the currency price has been consolidating above level 127.40. The pair has rebounded above the current  support and it is resuming upward. The upward movement will continue on the upside if the current support holds. Meanwhile, on November 19 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that EUR/JPY will fall but reverse at level 1.272 Fibonacci extension or 126.58. From the price action, EUR/JPY has begun resumption of an uptrend.

Daily Chart Indicators Reading:
EUR/JPY is at level 43 of the Relative Strength Index for period 14. The pair is in the downtrend zone and has resumed an upward move. The uptrend will have an accelerated movement if it breaks above the moving averages. The 21-day SMA and the 50-day SMA are sloping southward indicating the downtrend.

EUR/JPY Medium-term Trend: Ranging
On the 4- hour chart, EUR/JPY is in a sideways move. Since November 19, the currency pair has been fluctuating between levels 127.50 and 129.50. Recently, the Yen rallied to 129.50 high but the bulls could not sustain the bullish momentum. The pair could have been out of downward correction if the bullish momentum is sustained above level 130.50. The market declined to the lower price range and resumed upward.

4-hour Chart Indicators Reading
The pair is below the 20% range of the daily stochastic. It has fallen to the oversold region of the market. Buyers will emerge in the oversold region to push prices upward. The 21-day and 50-day SMAs are sloping downward indicating the downtrend. The upward move has just begun above the current support.

General Outlook for EUR/JPY
EUR/JPY has resumed an upward move as it attempts to break previous highs. Buyers have an uphill task to break above the moving averages and breach the previous highs. The Yen has reached the high of level 128.06 at press time.

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