Strong Breakout To New Trend High For EUR/JPY Points To Further Upside

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Updated: Dec 13, 2019, 10:20 UTC

Strong bullish move for EUR/JPY as it decisively breaks out to a new trend high, and clearly moves above the 34-week exponential moving average

The 34-week ema has acted as resistance since approximately September 2018. In addition, the internal downtrend line has clearly been broken, another bullish sign. The odds now favor a continuation of the uptrend begun off the September swing low of $115.86.

The EUR/JPY has already exceeded the 38.2% Fibonacci retracement at $122.45, of the full downtrend off the January 2018 high. Higher target zones as seen on the chart include approximately:

123.69 – 124.90 (38.2% retracement + several other Fibonacci levels, + previous support from 2018)
126.44 – 126.50 (50.0% Fibonacci retracement + several other Fibonacci levels, + previous support from 2018 swing low)
129.24 – 129.45 (61.8% Fibonacci retracement + several other Fibonacci levels, + swing low support from first quarter 2018)

Next, watch for intraday retracements and subsequent buy setups for entries to take advantage of the developing larger bullish trend.

EUR/JPY Daily Chart

Bruce Powers, CMT

About the Author

Bruce Powersauthor

Bruce boasts over 20 years in financial markets, holding senior roles such as Head of Trading Strategy at Relentless 13 Capital and Corporate Advisor at Chronos Futures. A CMT® charter holder and MBA in Finance, he's a renowned analyst and media figure, appearing on 150+ TV business shows.