EUR/JPY analysis for April 08, 2021
Looking at the chart on the quadruple time frame, we see that the EUR/JPY pair fails to stay above 130.50 and makes a pullback, looking for better support. Looking at the moving averages, we see that the MA20 and EMA20 are on the bearish side while we are now testing the MA50 at the psychological level at 130.00. The break below leads us to moving averages MA200 and EMA200 in the zone around 129.00-129.50, another break below leads us to the previous low at 128.50.
The MACD indicator tells us that the Euro is slowly losing strength. The blue MACD line has made a break below the signal line, making red histograms on the indicator, which is a sign that bearish is increasingly impacting this chart.
On the daily time frame, we see the first movement in a large rising channel with a resistance of 130.50 after touching the top line of the channel. After that, we have a pullback to the zone around 128.50, and then we again tested the zone around 135.50. The EUR/JPY pair again did not last, and again we see that there is a possibility that another pullback will happen.
Our first support is the zone around 129.50 together with the moving averages MA20 and EMA20. The bottom line is also very close, as is the approach of the MA50 moving average. Looking at the MACD indicator, we see that the bearish scenario is likely because the blue MACD line makes a slight turn towards zero, the neutral middle of the indicator.
We see that we are still in a growing channel on the weekly time frame since May 2020. the EUR/JPY pair managed to climb from 114.00 to 135.50, which is huge growth, and now there is a possibility for a certain pullback. We already had two bigger pullbacks in the canal, and now a third is an insight. Moving averages continue to support the bullish side. The MACD indicator moves sideways in the bullish zone but can pullback if the indicator starts to lose power.
