EUR/JPY Analysis: Stranded between SMAs

EURJPY

The single European currency depreciated about 51 base points against the Japanese Yen on Monday. The currency pair breached a support level formed by the 50-hour simple moving average at 126.35 during yesterday's trading session. 

The exchange rate was stranded between SMAs during the first half of Tuesday's session. The 50-hour SMA was providing resistance for the pair, while the 100– hour SMA and the lower boundary of an ascending channel pattern was providing support at 126.22.

A breakout from the moving averages could be expected during the following trading session. Technical indicators suggest an upside breakout.

EURJPY

EURJPY

This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.