EUR/JPY: Bullish breakout of 130.30 level on the cards

July 9 , 2018

 

By looking at the daily chart we can see that pair is trading in a downtrend channel which is generating bearish signal and it is making successively lower lows and lower highs. After making the low of 124.61 level bulls made a sharp counter attack and we have seen a bullish momentum but that was limited to 130.20 level again it slipped down to south side. Once again a bull has made a fresh attempt to move up but the resistance line of the downtrend channel is the stumble block for the time being. Well it seems like a valid breakout of this line i.e. 130.30 level is on the cards.

 

From technical prospective we can see a bullish flag pattern on the hourly chart is generating bullish signal. Presently pair is at make or breaks level because if it give bullish breakout then it may move further upside and if it fail to break the mentioned level then will again move in the strict range of downtrend channel. So traders and investors are advised to wait for the valid breakout once it breaks then only initiate your buying position. Odds are in favor of bulls and intraday bias remains bullish on the pair.

 

 

 

Three consecutive bullish marabuzo candlesticks have been posted above the moving average line which provides courage to buy.  The ways pair is behaving on the pairs it seems like the trend and momentum both are about to change in near term. A bullish crossover on MACD indicator is favoring the bears and providing bearish signal for the time being and RSI is also providing bullish signal from above 50 territories. The 133.00 level is immediate resistance level followed by 135.00 whereas 127.00 levels is strong key support level followed by 125.00 levels.

 

 

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