The EUR/JPY currency pair, on the D1 time-frame, was in a downtrend until the 3rd of September when a lower bottom was recorded at 115.869. Demand overcame supply and the price was pushed past the previous lower top.
After the bottom at 115.869 the price broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator broke through the zero baseline into positive terrain. This confirmed a possible price reversal or initial stages of a new trend.
A possible critical resistance level formed when a higher top was recorded on the 13th of September at 120.010.
If EUR/JPY breaks through the critical resistance level at 120.010, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 120.010 and dragging it to a possible support level that was formed on the 12th of September near the 15 Simple Moving Average at 117.573, the following targets may be calculated. The first target can be anticipated at 121.517 (161 %). The second price target can be predicted at 123.954 (261.8%) and the third and final target may be expected at 127.898 (423.6%).
If the support level at 117.573 is broken, the possible scenario is annulled and will need to be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the EUR/JPY currency pair on the D1 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
After the bottom at 115.869 the price broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator broke through the zero baseline into positive terrain. This confirmed a possible price reversal or initial stages of a new trend.
A possible critical resistance level formed when a higher top was recorded on the 13th of September at 120.010.
If EUR/JPY breaks through the critical resistance level at 120.010, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 120.010 and dragging it to a possible support level that was formed on the 12th of September near the 15 Simple Moving Average at 117.573, the following targets may be calculated. The first target can be anticipated at 121.517 (161 %). The second price target can be predicted at 123.954 (261.8%) and the third and final target may be expected at 127.898 (423.6%).
If the support level at 117.573 is broken, the possible scenario is annulled and will need to be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the EUR/JPY currency pair on the D1 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.