EURJPY Approaches Level 131.00,May Reverse at Level 131.07

Key Resistance Levels: 132.00, 133.00, 134.00
Key Support Levels: 129.00, 128.00, 126.00

EUR/JPY Price Long-term Trend: Bullish
EUR/JPY pair is trading in the bullish trend zone but may reverse at level 131.07. In the last bullish move, the upward move was interrupted at level 131.00 resistance. This has caused the pair to fall to the low of 129.77 as bulls bought the dips. The currency pair has found support above the 21-day line moving average. This is an indication of a further upward move. Since January 5, the resistance at level 131.00 has not been broken. A break at the resistance will propel price to reach the high of level 133.00.

Daily Chart Indicators Reading:
The pair is at level 54 of the Relative Strength Index period 14. The currency pair has a bullish crossover. That is, the 21-day line SMA crosses above the 50-day line SMA indicating a buy signal. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

EUR/JPY Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a brief uptrend. Buyers are attempting to break above the moving averages. On January 17 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The EURO is likely to rise but reverse to level 1.272 Fibonacci extensions or level 131.07.

4-hour Chart Indicators Reading
The EUR/JPY pair is above the 40% range of the daily stochastic. The pair is in a bullish momentum. It is likely to face rejection at the recent high as the market approaches the overbought region.

General Outlook for EUR/JPY
EUR/JPY is in a brief uptrend but may reverse at level 131.07. The currency pair is trading near the overbought region. According to the Fibonacci tool analysis, the EURO is likely to rise but reverse to level 1.272 Fibonacci extensions or level 131.07.



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