The EUR/JPY has begun the weeks trading exactly, as it was forecasted on Friday. The pair has revealed a new junior ascending channel pattern. Due to that reason it can be expected that the rate will surge.
However, the currency exchange rate is set to encounter various levels of resistance. For example the pair will first struggle to pass the 55-hour SMA at the 128.50 mark. Afterwards, the rate will struggle to pass the resistance of the weekly PP and monthly S1 at the 128.80 mark.
The mentioned pivot point cluster of resistance is almost surely going to be strengthened by the 100 and 200-hour SMAs, which are approaching from 129.00.
Trading ditutup: target tercapai
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As forecasted on Monday, the resistance cluster from the 128.80 to 129.00 levels has forced the EUR/JPY currency pair to decline in the borders of the medium term ascending channel pattern.
By the middle of Tuesday’s trading session the exchange rate was squeezed in by the combined resistance of the weekly PP, monthly S1 and the 100-hour SMA near the 128.80 mark from the upside and the 55-hour SMA from below at 128.60 as support.
Most likely the rate will trade horizontally until the rate encounters the support of the lower trend line of the ascending channel pattern.