EUR/JPY: Expecting Bears to Drag The Price To 125.00
Hello fellow traders. I hope you are all raring to have another great week of trading ahead. I was having a browse through the pairs and decided to write a quick analysis of EUR/JPY.
Looking at EUR/JPY on the Daily timeframe we saw a bullish engulfing on the 27th February, which helped price push up and print the first high, which reached 127.49 since just before Christmas 2018.
Since then price has fluctuated until it created new lower-low on the 16th January 2019, and since created another higher-low which touched 123.66 on 28th March 2019. It rejected off our significant support level of 124.00. Since having had a big bullish engulfing which engulfed the two previous days on 3rd April we have been on an upward move where we are currently trading at 125.55. 2018 saw 125.00 levels be a significant level of support where price found support in this area on 2 occasions in May and August 2018 and appears to be finding support in this region again currently.
I see price push up to our weekly resistance of 126.00 and reject of the 3rd touch of our descending trendline. However, if we see price close below the key level of 125.00, which could be a possibility on Wednesday after the ECB rate decision, then our bias of an uptrend would invalidate and my next target would then be 124.00.