EUR/JPY's significant rally

By Julian Yosovitch

December 8, 2014 • Reprints

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The EUR/JPY has generated a significant rally in recent weeks, trading at 148.70 yen last week.

The currency pair is trading within an important medium-term resistance zone alongside 150-151.50 and with a break above this level, we will see furthers bullish rallies towards the 165-169 area, and key medium term resistance and next to 2008 highs.

In case that this pair recognizes its actual resistances, we can see short term bearish movements back to supports located at 143, while 139 considered the more important support in the short- and medium-term for the EUR/JPY.

A break below 139 will imply a sign of weakness in the medium term, making way for greater bearish movements back to lowers areas at around 133-130.

The fact that the currency has overcome the 61.8% Fibonacci of the entire decline since 2008 is treated as a medium-term bullish signal so we can see further rallies toward more ambitious areas.

In the short term the currency is trading near resistance levels and in the event that the market recognizes those obstacles, we can see a certain selloff, and after those bearsish movement the long termn uptrend should be resumed as projected back to the 2008 highs.