EUR/JPY Pullback Within Uptrend: Further Gains Expected

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The EUR/JPY currency pair is currently experiencing a pullback, despite being in a strong uptrend on all timeframes. Analysts believe the uptrend is likely to continue.

Upward Trend Analysis:

  • Short, Intermediate, and Long-Term Bullishness: The EUR/JPY has exhibited a bullish bias across various timeframes, suggesting a continuation of the uptrend.
  • Temporary Pullback: The current price movement is seen as a temporary pullback, with potential support at the 50-day SMA (Simple Moving Average).
  • Dominant Uptrend Remains: There are no strong indications of a trend reversal yet.

Technical Indicators:

  • 50-Day SMA as Support: The 50-day SMA (around 168.49) has previously provided support during pullbacks, and it might do so again in this instance.
  • 100-Day SMA as Additional Support: The 100-day SMA (blue line) could offer further support if the pullback deepens.
  • RSI in Neutral Zone: The Relative Strength Index (RSI) suggests there’s room for further upside before the pair becomes overbought.

Upside Potential:

  • Break Above 170.89: A decisive break above the recent high (170.89) could signal a continuation of the uptrend.
  • Target at 171.60: The next potential resistance level lies at 171.60, the high from April 29th.

Conditions for Reversal:

  • Break Below 166.62: A drop below the 50-day SMA (166.62) could indicate a potential trend reversal, but confirmation would require further downside action.
  • Trendline Break at 164.50: A decisive break below the uptrend line (around 164.50) would provide stronger confirmation of a trend reversal.

While the EUR/JPY is experiencing a pullback, the underlying uptrend remains intact. The key support levels to watch are the 50-day and potentially the 100-day SMAs. A break above the recent high (170.89) could signal further gains towards 171.60. However, a drop below 166.62, especially if followed by a break below the uptrend line, would suggest a potential trend reversal.


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