After 50% Fibonacci retracements from the lows of 109.206 levels, the EURJPY price has been inching towards 2-years highs despite shooting star pattern at 132.336 levels (refer previous month candle).
EURJPY rallies are stimulated ever since the bulls have tested support at trend line (at 131.454 levels). Thereby, upswings have gone above 7DMAs, now on the verge of 21DMAs.
For now, the extension of rallies seems most likely as 7EMA crosses above 21EMA which is the bullish EMA crossover, and the break-out above stiff resistances at 133.153 levels to act as a better confirmation (refer monthly chart).
RSI on both timeframes shows upward convergence to indicate the strength in the consolidation phase but on monthly terms, it has approached overbought zone, while stochastic curves have also been the same but signifies overbought pressure but no traces of selling momentum so far.
To substantiate the bullish stance, MACD, evidence bullish crossover, and signals extension of the uptrend.
Overall, uptrend sentiment seems to be intact amid minor hiccups ahead of today’s significant data announcement in Eurozone PMIs.
In order to participate in this bullish sentiment, one-touch options are useful for intraday traders who believe the price of an underlying asset would undergo a large price movement, but who are unsure of the direction.
Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 19 levels (which is neutral), while hourly JPY spot index was at shy above -58 (bearish) while articulating (at 06:54 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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