EUR-JPY is Facing Correction Stage, Waiting for Next Signal of Buying Stance

EUR-JPY, in general, has entered a mature trend area, even for certain times it is already in an overbought condition. The short-term trend is bullish. It can be said that the conditions for holding back buy must be taken seriously.

But don’t rush to sell. See also analysis for longer-term trends. For your information, the medium-term trend is neutral, according to our internal technical team. Even though it seems that the stochastic is over-bought, the MACI is over-bought, please remember that the area above level 80 means a strong bullish trend as well.

We see that consolidation conditions are taking place. This means that there may be a correction, but we see that the corrections that occur are limited. Short-term players may be interested in releasing some of their positions as profit-taking actions. You can also buy short to quote a few pips, but we tend to think that the trend will still rise again.

The conclusion we can take, we will still hold long positions for a few moments and see if there will be another resistance break-out. Since the breakout of 122.75, the EUR-JPY currency pair was evolving in a relatively neutral short-term trend, but the recent rise in the Euro currency pairs has allowed the currency pair to reach the target of the medium-term trend that has become bullish recently. In the case of a break-up, the trend and turnaround could be confirmed.

Our suggestion is to watch if the RSI line can break 70 level line trough from above. If it doesn’t so, then buying stance is confirmed. Remember as well that Stoch-osc sometimes stays above 80 level for several days meaning that strong bullish condition is taking place.

Resistance: 127.54
Next resistance: 136.00

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