Strong Breakout To New Trend High For EUR/JPY Points To Further Upside.

Strong bullish move for EUR/JPY as it decisively breaks out to a new trend high, and clearly moves above the 34-week exponential moving average (ema) (orange line on weekly chart below). The 34-week ema has acted as resistance since approximately September 2018. In addition, the internal downtrend line has clearly been broken, another bullish sign. The odds now favor a continuation of the uptrend begun off the September swing low of $115.86.

EUR/JPY Weekly Chart

(Click on image to enlarge)

EUR/JPY Weekly Chart

The EUR/JPY has already exceeded the 38.2% Fibonacci retracement at $122.45, of the full downtrend off the January 2018 high. Higher target zones as seen on the chart include approximately:

  1. 123.69 – 124.90 (38.2% retracement + several other Fibonacci levels, + previous support from 2018)
  2. 126.44 – 126.50 (50.0% Fibonacci retracement + several other Fibonacci levels, + previous support from 2018 swing low)
  3. 129.24 – 129. 45 (61.8% Fibonacci retracement + several other Fibonacci levels, + swing low support from first quarter 2018)

Next, watch for intraday retracements and subsequent buy setups for entries to take advantage of the developing larger bullish trend.

EUR/JPY Daily Chart

(Click on image to enlarge)

EUR/JPY Daily Chart

Disclosure: Above analysis is for educational purposes only. Proceed at your own risk. All information given here is largely based on technical analysis and the analysis is very dynamic in nature and ...

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