EURJPY poised to go higher!
The Euro has been strengthening against the Japanese Yen for eight months now. It rose from its May low at 114.42 to 127.48 on 7 January, gaining 11,4%. The single currency (Euro´s nickname) reached an almost two years high at 127.48 (A), then it had a sharp drop to the support level around 125.15. It bounced back from this level and in the same time the stochastic oscilator reached the oversold territory way below the 20 level.
The Euro is now trading again above its 50 moving average and is ready to test the previous high (A). If it manages to break above this high, it could reach the resistance level in the 128.00 – 129.00 range.
On the other hand, if the course broke below the support range (highlighted on the chart), it could test the support levels around the 124.00, then at the 123.00 levels.