EUR/JPY analysis: eyeing the top of the range at 116.30
EUR/JPY Current price: 114.70
Continued weakness in the Japanese yen has helped the EUR/JPY pair extend its weekly advance up to 114.83, in spite of EUR self-weakness. The pair has been rising steadily ever since the week started, surpassing already last week's high, although still contained within the range established late July between 112.00 and 116.30. Technical readings support some further advances, given that the pair is ending the day above its 100 DMA for the first time in two weeks. Shorter term, the 1 hour chart shows that the price bounced sharply from its 200 SMA, while the 100 SMA accelerated higher below the largest one. Technical indicators in the mentioned chart have lost upward momentum, but entered consolidative mode within extreme overbought territory, far from suggesting an upcoming downward move. In the 4 hours chart, the price has managed to advance above its 100 and 200 SMAs that anyway lack directional strength, while technical indicators have also lost bullish momentum, but hold well above their mid-lines. The pair has an immediate resistance at 115.00, a Fibonacci level, with a break above it supporting an upward continuation towards the mentioned top of the range, around 116.03.
Support levels: 114.40 113.90 113.50
Resistance levels: 115.00 115.45 115.90
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
