Saturday, February 10, 2018

EUR/JPY In The Next Few Weeks

EUR/JPY reached the limit of the multi-day range between 131.40 and 134.40, as you can see on the screenshot of the D1 time frame, and right after that it began to depreciate.

On the W1 time frame we can see a RSI divergence and if the pair reaches its limit it should fall to 128.50 – 128.40. At that level there is a support zone marked by a light blue line on the monthly time frame.

 The next support is at 125.50 – 125.00 and it is marked with light green.

The alternative scenario is for a rally to the resistance in the zone around 139.00 – 139.50.
We should also watch the RSI divergence – in case there is a breakout above the divergence trend line we could expect a rally to the resistance zone.