EURJPY is rebounding off the 23.6% Fibonacci retracement level of the up leg from 124.40 to 144.25 at 139.55 and is returning above the 140.00 round number.
According to the MACD, negative momentum could push for further losses in the short-term as the indicator tries to fall below its trigger line. However, the RSI is advancing and is holding above its neutral threshold of 50, confirming the latest bullish movement.
On the upside, resistance could occur around the more-than-seven-year-high of 144.25 ahead of the high of December 2014 at 149.25. Higher still, the inside swing low of March 2008 at 151.70 would increasingly come into scope.
Further declines may meet support around the 140.00 psychological mark and the 23.6% Fibonacci of 139.55. Not far below, support could come from the three-month uptrend line around 138.00. Even lower, a break of the diagonal line may open the way for a test of the 40-day simple moving average (SMA) near 137.60, ahead of the 38.2% Fibonacci of 136.75.
Overall, the very short-term outlook appears mostly bearish, but the broader outlook remains bullish for the most part.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.