• EUR/JPY is oscillating between 20- and 50-EMAs, which indicates a volatility contraction.
  • An establishment above the downwards-sloping trendline has strengthened the eurozone bulls.
  • For further upside, the asset needs to violate the 137.05-137.31 supply area.

The EUR/JPY pair is aiming gradually higher after a bullish open test-drive move in the Asian session. The cross is continuously facing barricades around the critical resistance of 136.50. On a broader note, the asset is scaling higher after printing a low of 133.39 on Tuesday, has added 2.60% and bulls are still gearing for a fresh rally.

Confident stability above the downward sloping trendline, on a four-hour scale, plotted from July 21 high at 142.33 has strengthened the shared currency bulls. However, the supply zone placed in a 137.05-137.31 range will act as a major resistance ahead.

The 50-period Exponential Moving Average (EMA) at 136.65 is restricting the eurozone bulls from scaling higher while the 20-MA at 136.00 is providing a cushion to the asset. An oscillation of an asset in a mid of 20 and 50-EMAs signals a volatility contraction.

Also, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range, which indicates that the asset is awaiting a potential trigger for a meaningful move.

Should the asset violates the above-mentioned supply zone firmly, the eurozone bulls will drive the asset towards July 26 low at 138.13, followed by July 27 high at 139.51.

On the contrary, the yen bulls could regain strength if the asset drops below Thursday’s low at 135.66. An occurrence of the same will drag the asset towards Wednesday’s low and Tuesday’s low at 134.83 and 133.39 respectively.

EUR/JPY four-hour chart

EUR/JPY

Overview
Today last price 136.26
Today Daily Change 0.10
Today Daily Change % 0.07
Today daily open 136.16
 
Trends
Daily SMA20 138.28
Daily SMA50 139.87
Daily SMA100 137.87
Daily SMA200 133.77
 
Levels
Previous Daily High 136.92
Previous Daily Low 135.64
Previous Weekly High 140.08
Previous Weekly Low 135.55
Previous Monthly High 142.43
Previous Monthly Low 135.55
Daily Fibonacci 38.2% 136.43
Daily Fibonacci 61.8% 136.13
Daily Pivot Point S1 135.56
Daily Pivot Point S2 134.96
Daily Pivot Point S3 134.28
Daily Pivot Point R1 136.84
Daily Pivot Point R2 137.52
Daily Pivot Point R3 138.12

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD bears trying hard to keep reins below 0.7000, US/China inflation eyed

AUD/USD bears trying hard to keep reins below 0.7000, US/China inflation eyed

AUD/USD remains depressed around the intraday low near 0.6955 as sellers keep reins for the second consecutive day ahead of the key US inflation data. Firmer China CPI may offer intermediate help but US inflation is crucial amid strong jobs report, hawkish Fedspeak.

AUD/USD News

EUR/USD struggles to defend 1.0200 as sour sentiment teases DXY bulls ahead of US inflation

EUR/USD struggles to defend 1.0200 as sour sentiment teases DXY bulls ahead of US inflation

EUR/USD fades the corrective pullback from 1.0202 around 1.0215 as traders turn cautious ahead of the key US CPI during the initial hour of Wednesday’s Asian session. Also exerting downside pressure on the major currency pair are the economic fears surrounding the Eurozone.

EUR/USD News

Gold aims to recapture $1,800 as investors trim US Inflation forecasts

Gold aims to recapture $1,800 as investors trim US Inflation forecasts

Gold price is displaying a volatility contraction after printing a fresh monthly high at around $1,800.00 on Tuesday. The precious metal witnessed a decent north-side move on Tuesday and later on turned sideways ahead of US CPI.

Gold News

Iran adopts crypto in foreign trade, debuts with $10 million import order

Iran adopts crypto in foreign trade, debuts with $10 million import order

In a watershed moment for crypto adoption, Iran registered its first official order for importing $10M worth of goods paid for in cryptocurrencies. A private Iranian news agency reported that the Ministry of Industry, Mine and Trade has plans to widely use cryptos in foreign trade.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures