EURJPY stays above an ascending trend line on its daily chart, indicating that the price remains in the uptrend from 114.85. As long as the trend line support holds, the upside movement could be expected continue.

On the 4-hour chart, the EURJPY pair moved sideways in a trading range between 131.74 and 133.11. A breakout of 133.11 resistance could take price towards 134.40 previous high. Above this level could signal resumption of the uptrend from 114.85, then another rise towards 140.00 could be seen.

On the downside, a breakdown below 131.74 support could bring price back towards next support level at 129.36, followed by 127.56. The 127.56 level is treated as key support of the uptrend 114.85. Below this level would confirm that the upside movement had completed at 134.40 already, then the pair would find next support level at 112.40.

There is a bullish trend line from 109.04 to 114.85 now at around 118.00 on the weekly chart. This would be the final target for the downside movement.

Technical levels

Support levels: 131.74 (the September 26 low), 129.36 (the September 6 low), 127.56 (the August 18 low), 122.40 (the June 15 low), 118.00 (the bullish trend line on the weekly chart), 114.85 (the April 17 low).

Resistance levels: 133.11 (the September 29 high), 134.40 (the September 22 high), 141.05 (the June 2015 high), 149.75 (the December 2014 high).

This article is written by Franco Shao, a senior analyst at ForexCycle.

© 2017 Copyright Franco Shao - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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