EUR/JPY enters into ascending channel

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 29% 30% -3.45%
Shorts 71% 70% 1.41%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Neutral Neutral Sell
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Sell Buy Buy
SAR (0.02; 0.2) Sell Buy Buy
Aggregate

The second half of Tuesday trading session showed that the EUR/JPY did succeed to overcome a barrier set up by the 200-hour SMA. Nor did a combination of the 20-hour SMA and the weekly PP at 129.46 or the 55- and 100-hour SMAs stopped the subsequent fall. The good news is that this turnaround most probably represents a second reaction high of a new ascending channel, which started to guide movement of the pair from the end of the previous week. If this assumption is true, the currency rate is expected to make a rebound somewhere between the 128.80 and 128.90 levels. On the other hand, there is still a possibility that the downside momentum will enable the pair to break the existing formation and slide towards the weekly S1 at 128.15.

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