EUR/JPY breaks out from rising wedge

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 25% 27% -8.00%
Shorts 75% 73% 2.67%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Sell Sell
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Buy Buy Buy
SAR (0.02; 0.2) Sell Buy Buy
Aggregate

As it was expected, the EUR/JPY continued to move in a limbo between the rising wedge's upper trend-line from the top and the 20- and 55-hour SMAs from the bottom until it reached a combined resistance level formed by the weekly and monthly R1 at 130.68. Once this maximum high was, the pair made a U-turn and left the formation in southwards. Nevertheless, the expected freefall until the 200-hour SMA at 129.21 did not happen immediately, as the currency rate was hindered by the 100-hour SMA. Given the mid-day plunge that pushed technical indicators in the strongly bearish and oversold territory, a rebound from the aforementioned 200-hour SMA is the most likely scenario. Consequently, the Euro may try to re-test the 100– or 55-hour SMAs circa 130.10.

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