EURJPY Technical Analysis Report 7 May, 2024
- The EURJPY currency pair is expected to rise further, targeting the next resistance level at 168.00.
- The pair recently reversed up from a significant support zone, signaling potential for further gains.
- The bullish outlook is supported by the prevailing daily uptrend, acceleration of intraday Momentum, and continued bearish sentiment for the yen across currency markets.
Market Analyst Dmitry Chernovolov provides an in-depth technical analysis of the EURJPY currency pair, predicting a rise towards the 168.00 resistance level.
EURJPY Reverses from Support Zone
The EURJPY currency pair recently reversed up from a support zone located between the major support level of 164.45 (a multi-month high from November), the 20-day moving average, and the 38.2% Fibonacci correction of the previous upward impulse from December. This upward reversal, marked by the daily Japanese candlesticks reversal pattern Morning Star Doji, halted the previous short-term corrective wave 4.
Further Rise Expected Amid Bullish Market Sentiment
Given the prevailing daily uptrend, acceleration of the intraday Momentum, and the continuation of bearish yen sentiment across currency markets, the EURJPY currency pair is expected to rise further. The next target for the pair is the resistance level at 168.00. This analysis aligns with the current market sentiment and technical indicators, suggesting a bullish outlook for the pair.
Conclusion
In conclusion, the EURJPY currency pair is expected to continue its upward trajectory, targeting the resistance level at 168.00. This bullish outlook is supported by the recent upward reversal from a significant support zone, the prevailing daily uptrend, and continued bearish sentiment for the yen across currency markets. However, as with all financial markets, it is crucial to monitor market developments and adjust trading strategies accordingly.
