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Featured Trade: EUR/JPY short term bullish tone remains intact

Short-term technical outlook on EUR/JPY (Mon 15 Apr)



click to enlarge charts

Key elements

  • Since its 124.77 minor swing low of 10 Apr 2019, the EUR/JPY cross pair has staged a bullish breakout from its minor descending trendline resistance from 01 Mar 2019 high.
  • Short-term momentum remains positive as the hourly Stochastic oscillator continues to inch upwards and still has further room to manoeuvre to the upside before it reaches an extreme overbought level of 90.
  • The keys short-term support rests t 126.30 which is defined by the lower boundary of the minor ascending channel support from 28 Mar 2019 low & 23.6% Fibonacci retracement of the recent push up from 10 Apr 2019 low to 12 Apr 2019 high.
  • The next significant near-term resistance stands at 127.50 which is defined by the upper boundary of the minor ascending channel from 10 Apr 2019 low, 01 Mar 2019 swing high & 1.382 Fibonacci projection of the rebound from 28 Mar 2019 low to 09 Apr 2019 high projected from 10 Apr 2019 low.

Key Levels (1 to 3 days)

Pivot (key support): 126.30

Resistances: 126.90 & 127.50

Next support: 125.60

Conclusion

If the 1.5765 key short-term pivotal support holds, the EUR/JPY may see a further push up to target 126.90 follow by 127.50 next.

On the other hand, a break with an hourly close below 126.30 negates the bullish tone for a deeper pull-back towards the next support at 125.60 (pull-back of the former descending trendline resistance from 01 Mar 2019 & former minor swing high area of 09 Apr 2019).

Charts are from eSignal





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