EURJPY experienced a huge week after a bullish triangle breakout, appreciating by more than 3.0% to an almost 15-year high of 155.37 in what was the fastest rally in more than a decade.
The bulls are trying to revive their positive momentum near their recent highs as the RSI and the stochastic oscillator are flagging overbought conditions. Note that the MACD is currently testing a former peak area, raising some caution too.
The nearest obstacle could be around 156.00, where the resistance trendline which connects all the highs from January 18 is positioned. A significant extension higher could lift the price up to the 2007-2008 constraining zone of 159.40-160.00, unless the 157.55 barrier cools upside pressures beforehand.
In the case the price stalls around the 161.8% Fibonacci extension of the 151.60-146.12 downfall at 155.00, the focus will turn to the broken long-term ascending line from August 2020 at 153.75. Failure to pivot there might provoke a quick downfall into the 152.30-151.60 area, where April's ascent topped. The 20-day simple moving average (SMA) is converging to the same region, while slightly lower, the pair may look for support within the 150.50- 150.00 territory before the 50-day SMA comes under examination.
All in all, the latest spike in EURJPY could motivate some profit-taking, especially if the pair proves unable to claim the 155.00-156.00 zone.
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.