EURJPY bulls ran out of fuel after unlocking a 15-year high of 157.92 last week.
The pair remained trapped below the 158.00 ceiling for the fifth consecutive trading day, increasing speculation that the latest fast rally might have matured. The RSI and the stochastic oscillator have been moving sideways within the overbought zone since mid-June in the daily, weekly and monthly timeframes, backing this narrative too.
The market structure in the very short-term picture, however, seems to be taking the shape of an ascending triangle, which is typically a bullish continuation pattern. If the price exits the triangle on the upside, resistance could next commence within the 159.40-160.00 constraining zone last active during the 2007-2008 period. Another leg higher could pause somewhere between 162.50 and 163.00.
In the event the price slides below the 157.35 floor, where the triangle’s lower trendline intersects the broken resistance line from January 18th, selling pressures could intensify towards the 155.85 handle. Another defeat there could threaten a plunge towards the 20-day simple moving average (SMA) and the broken long-term ascending line from August 2020 at 154.45.
All in all, EURJPY could end lower on profit-taking in the short term. Yet, as long as the price trades above the 157.35 base, there is potential for a rally aiming for the 160.00 psychological mark.
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 bounces back, trades above 1.0860
EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future.
GBP/USD turns north ahead of the weekly close, approaches 1.2700
GBP/USD extended its rebound from near 1.2600 and is approaching 1.2700 on the back of a weaker US Dollar. The Greenback accelerated to the downside following comments from Fed’s Powell.
Gold resumes advance and approaches record highs
Gold remains near record highs and achieved its highest monthly close ever in November. Global bond yields continue to decline as inflation further cools, supporting the upside in XAU/USD. With central banks expected to remain on hold, the focus will be US labor market data.
Solana likely to extend gains as DeFi airdrop season could boost user base
Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report. SOL price extends rally, yielding nearly 4% daily gains.
Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside
TSLA stock sinks three days in a row despite Cybertruck unveiling. Analysts conclude that Cybertruck will find it difficult to turn a profit. TSLA stock is the midst of forming a bearish Three Black Crows pattern on the daily chart.