EUR/JPY bounces off short term support

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 38% 40% -5.26%
Shorts 62% 60% 3.23%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Sell Sell
Stochastic (5; 3; 3) Buy Sell Sell
Alligator (13; 8; 5) Buy Buy Buy
SAR (0.02; 0.2) Buy Buy Buy
Aggregate

As the Euro bounced off the long term ascending channel pattern's upper trend line against the Japanese Yen, it began a decline, which stopped at the middle of Thursday's trading session. The rate rebounded against the lower trend line of the short term ascending channel pattern, which was supported by the 55-hour SMA and the weekly R1 near the 130.80 mark. Due to the before mentioned bounce off from the long term resistance, it can be expected that the currency exchange rate will pass the junior pattern's support. However, as the rebound recently occurred, it is quite possible that the rate will go for a reconfirmation of the dominant trend line. The reason for this hypothesis is that the range up to the 131.50 mark is free from notable resistance levels.

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