EUR/JPY analysis: Returns to support zone

view original post


The resistance of the 131.40 mark was held on Wednesday, and the EUR/JPY currency exchange rate declined to the support zone at 130.63/130.90. On Thursday morning, the rate was located in the zone and below the resistance of the 50-hour simple moving average at 130.85.

A decline below the support zone would most likely result in the pair looking for support in the weekly S1 simple pivot point at 130.48. If the rate passes the support of the pivot point, the rate could look for support in the 130.00 mark before reaching the weekly S2 at 129.79.

On the other hand, a surge of the pair should first pass the resistance of the 50-hour simple moving average. Above the simple pivot point, the rate would most likely encounter resistance in the 131.40 mark before reaching the resistance zone at 131.48/131.61. Note that the resistance zone is strengthened by the weekly simple pivot point and the 200-hour simple moving average.