EUR/JPY edges sideways as progress remains capped [Video]

Melina Deltas, CFTe XM

EURJPY is moving back and forth from the 200-day simple moving average (SMA) and is consolidating between the 139.00 support and the 143.60 resistance. A paused state of directional momentum is reflected in the Ichimoku lines, while the price rests within the cloud.

The mixed signals in the short-term oscillators further mirror the stall in the price. The MACD has barely inched above its red trigger line in the negative region, while the RSI moves south from its neutral mark.

To the upside, emanating pressure over the last couple of weeks has denied upside moves. If buyers manage to jump above the SMAs around 142.50, a revisit of 143.60 could unfold. Overcoming these constrictions could see resistance develop at the eleven-week high of 145.55. Another leg up could tackle the 146.70 barrier.

Otherwise, if sellers drive the pair below the cloud, the 139.00 round number could interrupt the pair ahead of the 137.40-138.00 support region. Should it fail to do so, then the market could switch to strongly negative.

Summarizing, initially the confines of 139.00 or 143.60 would need to be breached to revive directional momentum.

Author

Melina Deltas, CFTe

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.

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