EUR/JPY and GBP/JPY Approaching Important Supports

Aayush Jindal -

The Euro and British Pound started a steady increase in the past few days against the Japanese Yen. Both EUR/JPY and GBP/JPY are correcting gains, but approaching important supports.

Important Takeaways for EUR/JPY and GBP/JPY

  • The Euro gained pace above 129.00 before correcting lower against the Japanese Yen.
  • There was a break below a connecting bullish trend line with support at 129.10 on the hourly chart of EUR/JPY.
  • GBP/JPY spiked above the main 150.00 resistance before correcting lower.
  • There was a break below a major bullish trend line with support at 148.75 on the hourly chart.

EUR/JPY Technical Analysis

After forming a base above the 127.50 level, the Euro started a steady increase against the Japanese Yen. The EUR/JPY pair broke many hurdles near the 128.50 level to move into a positive zone.

There was also a break above a key contracting triangle with resistance near 128.00 on the hourly chart of EUR/JPY. The pair surged above the 129.00 level and the 50 hourly simple moving average. It traded to a new monthly high at 129.97 on FXOpen and it is currently correcting gains.

There was a break below the 129.50 support. The pair broke the 38.2% Fib retracement level of the upward move from the 127.70 swing low to 129.97 high. There was also a break below a connecting bullish trend line with support at 129.10 on the same chart.

The pair is now approaching the 128.80 support level and the 50 hourly simple moving average. The 50% Fib retracement level of the upward move from the 127.70 swing low to 129.97 high is also near the 128.82 level.

If there is a downside break below the 128.80 support, the pair could continue to move down towards the 128.40 support. Conversely, it might start a fresh increase from 128.80.

An initial resistance on the upside is near the 129.20 level. The main resistance sits at 129.50, above which the pair could rise towards the 130.00 level.

GBP/JPY Technical Analysis

The British Pound also followed a similar pattern and climbed steadily from the 147.00 support zone against the Japanese Yen. The GBP/JPY pair traded above the 148.50 resistance level to move into a bullish zone.

The pair even surged above the 150.00 level and settled above the 50 hourly simple moving average. It traded to a new multi-week high at 150.44 before starting a sharp downside correction.

There was a break below the 150.00 and 149.50 support levels. There was also a break below a major bullish trend line with support at 148.75 on the hourly chart. The pair is now trading well below the 150.00 level and the 50 hourly simple moving average.

A low is formed near 148.22 and the pair is consolidating losses. An initial resistance is near the 148.75 level. It is close to the 23.6% Fib retracement level of the recent drop from the 150.44 high to 148.22 low.

The main resistance is now forming near the 149.30 level or the 50% Fib retracement level of the recent drop from the 150.44 high to 148.22 low. A clear break above 149.00 and 149.30 could pump the pair back above the 150.00 level.

If not, the pair is likely to resume its decline from 148.20. An initial support is near the 148.00 level, GBP/JPY could test the 147.60 support zone.