EUR/JPY technical analysis: Bulls locked on 21-day moving average and a 61.8% Fibonacci confluence

The market attempting to base near term, testing 21-DMA.
Dips lower to find support at the 55-day ma at 118.32/28.

Ross J Burland FXStreet

Now testing the 21-day moving average and a 61.8% Fibonacci confluence, overcoming the 6-month downtrend at 118.77 and rising from 116.58/115.87 recent lows of late, the cross is now up to test the above the 120.00/05 (recent high and 38.2% Fibonacci retracement) and bulls are well on their way to the June lows at 120.79/96 which comes before the 121.38 late July high and the 200-day moving average of 122.32.

"The market is possibly attempting to base near term and the close above 120.05 adds weight to that view. Dips lower will find support at the 55-day ma at 118.32/28 ahead of the 117.45 uptrend," analysts at Commerzbank argued. On the downside and wide, bears can target 115.87 ahead of the 2017 low at 114.86.

EUR/JPY weekly chart

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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