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EURJPY still holds above 136.00

Market Analysis

EURJPY , H1

The dollar traded firmer as the release of the December U.S. jobs started to loom large. USDJPY has rallied for a third consecutive day, hitting a nine-day peak at 113.28, extending the rebound from the thee-week low that was seen earlier in the week at 112.05.A record-breaking rally on Wall Street, and strong equity market gains in Asia and globally have weakened the yen, as per the usual inverse correlation the Japanese currency often displays during phases of pronounced risk appetite.

It wasn’t just a firmer dollar story, as EURJPY, despite a drift lower in EURUSD, managed to log a new 26-month high, and AUDJPY a 10-week peak. EURJPY extending its rally seen since March last year, by breaking 136.00,  while today manage to hold its gains above this level. In the short term, bullish performance remians, with EURJPY traded above the 20-period MA since Wednesday, will its above the PP level at 135.82, based on the hourly Pivot Analysis. Significant is the fact that the last 6 hours on the anticipation of US Data, the pair retests the R1, at 136.57, 6 times.

Momentum indicators comply with this bullish picture, short-term and long-term, since MACD, RSI and Stochastic configured positively. However both intra- dayRSI and Stochastic are in the Overbought territory, something that provides a possibility of a pullback correction for the pair. However the overall picture is still bullish, with the pair moving above its 50 and 200 DAY MA.

An intra-day Long position was taken at 136.42, on the anticipation of the US open, since the pair holds above yesterday’s high at 135.20.  Targets have been set close to R2, at 137.00  and at 137.50. Support was set at 135.50.

 

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Andria Pichidi

Market Analyst

HotForex

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