The EURJPY currency pair on the H4 time-frame was in a downtrend until 24 March, 2021 when a lower bottom was reached at 128.292. The attractive price of 128.292 enticed the bulls and subsequently the bears were overthrown.
The EURJPY continued to push higher and the upward momentum has caused the market to eventually breach both the 15 and 34 Simple Moving Averages. The Momentum Oscillator confirmed the positive sentiment as it crossed the zero baseline into positive terrain. This indicated to technical traders that a possible new uptrend was in progress.
A higher top and possible critical resistance level formed on 26 March at 129.460 and bears are currently trying to exert downward pressure to the EURJPY pair. A possible support line might have been touched at 128.832 on 29 March near the 15 Simple Moving Average and may have pushed prices upward again.
If the pair breaks through the critical resistance level at 129.460, then three possible price targets may be calculated from there. Applying the Fibonacci tool to the top of the resistance level at 129.460 and dragging it to the bottom of a possible support level near the 15 Simple Moving Average at 128.832, the following targets could be considered. The first target can be projected at 129.848 (161 %) and the second price target might likely be at 130.476 (261.8%). The third and final target may be expected at 131.492 (423.6%) if the uptrend continues.
If the 128.832 support level is broken, the bullish scenario above is invalidated and will need to be reexamined.
As long as buyers maintain a positive sentiment and demand overwhelms supply, the outlook for the EURJPY currency pair on the H4 time-frame will remain bullish.
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