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The Euro came selling under pressure against the US dollar, but it showed resiliency against the Japanese yen. The EURJPY pair is following a nice bullish trend, which might take it higher in the short term. There is a major release lined up later today, as the Euro area consumer confidence data will be released. The market is expecting a minor improvement this time, but it is expected to remain in the negative territory. So, there is a lot of bearish pressure on the Euro, but we need to be very careful as the shared currency might bounce abruptly any time moving ahead. The German import price index will also be released in a few minutes from now.

please see chart attached ad post image

There is a bullish trend line formed on the hourly chart of the EURJPY pair, which is acting as a solid support for the pair. Every time the pair moved lower it managed to gain buyers around the mentioned trend line. However, there is a critical point to note i.e. the pair struggling around the 50% fib retracement level of the last leg from the 148.22 high to 144.95 low. There is one more bullish sign, which is the fact that the pair is trading above the 100 hour MA. So, there is a chance of a spike higher towards the 200 hour MA. A break above the mentioned MA could take the pair towards the last swing high of 147.50-60.

On the downside, the highlighted trend line might continue to act as a support. A break below would invalidate the bullish scenario.

Overall, one might consider buying dips as long as the pair is trading above the 100 hour MA.

Posted By Simon Ji of IKOFX