EUR/JPY reaches triangle’s resistance
The common European currency reached the resistance of a ascending triangle pattern against the Japanese Yen. The upper trend line of the triangle pattern has kept the pair from surging since the start of July. Due to that reason it is still to be seen whether the various support levels below it will be able to force the Euro through the trend line. Namely the combined support of the 55 and 100-hour SMAs are set to provide support to the rate. Both of the moving levels of significance were located at the 130.16 level at the start of the second part of Tuesday’s trading. It is most likely that the currency rate will retreat once more to the mentioned support levels during the next 24 hours.
By the way, as the analysis was written, the pair already declined down to the lower trend line of the triangle. Due to that reason, a surge can be expected. Moreover, the SMAs have proven that they lack the strength to stand in the way of the triangle pattern movements.
By the way, as the analysis was written, the pair already declined down to the lower trend line of the triangle. Due to that reason, a surge can be expected. Moreover, the SMAs have proven that they lack the strength to stand in the way of the triangle pattern movements.
The common European currency recently encountered a dominant resistance line against the Japanese Yen. However, that does not mean that the ascending channel is at the end of its resistance like other ascending patterns on Yen pairs. The currency exchange rate is highly likely to find support during the next trading session in a combined support of the weekly R1 at the 130.80 mark, supported by other levels of significance. The other levels of significance might be the lower trend line of the junior ascending channel pattern and the 55-hour simple moving average, which by the second half of Wednesday’s trading session had began to move northwards.