HomeContributorsTechnical AnalysisEURJPY Rebounds Off Triple Bottom At 127.90

EURJPY Rebounds Off Triple Bottom At 127.90

EURJPY has been in an upside corrective mode after the rebound off the 127.90 level, creating a triple bottom.

Technically, the RSI indicator is pointing upwards in the negative region, confirming the recent bullish move; however, the MACD is still holding below its trigger and zero lines. In trend indicators, the 20- and 40-day simple moving averages (SMAs) posted a bearish crossover in the short-term, approaching the 200-day SMA as well.

If the price continues the upside move, immediate resistance could come from the 200-day SMA at 130.56 ahead of the negative cross of the short-term SMAs at 130.75. Breaching these lines, the barrier could meet the 131.40 barrier ahead of the 132.90 level.

On the flip side, a potential downside movement could test again the 127.90 bottom. A successful break below this key support, it could shift the outlook to strongly negative, hitting the 125.15 hurdle and the 122.80 level.

Summarizing, EURJPY is creating a triple low around 127.90 and any moves beneath this line could endorse the bearish bias. Though, a jump beyond the more-than-three-year high of 134.11 could switch the outlook to positive.

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