EUR/JPY and GBP/JPY Eyeing Further Upsides

FXOpen

The Euro and British Pound started a decent recovery against the Japanese Yen. Both EUR/JPY and GBP/JPY are likely to rise slowly and steadily in the short term.

Important Takeaways for EUR/JPY and GBP/JPY

  • The Euro grinded higher recently after forming a bottom near the 124.90 level against the Japanese Yen.
  • There is a crucial bullish trend line in place with support at 127.60 on the 4-hours chart.
  • GBP/JPY moved above the 141.80 and 142.00 resistances, which is a positive sign.
  • The pair could correct lower, but it is likely to resume its upside above the 143.00 level.

EUR/JPY Technical Analysis

The Euro formed a decent support base near the 125.00 level against the Japanese Yen. The EUR/JPY pair gained traction above 126.00 and 127.00 resistance levels to move into a positive zone.

The upside move was strong as the pair settled above the 127.00 pivot level and the 50 simple moving average. The pair climbed above the 50% Fib retracement level of the last decline from the 129.45 high to 124.90 low.

EUR/JPY Technical Analysis Euro Yen Chart

It opened the doors for more gains and the pair broke the 128.00 resistance. There was also a break above the 76.4% Fib retracement level of the last decline from the 129.45 high to 124.90 low. It indicates that the pair may perhaps rise towards the 129.45 swing high.

If there is a downside correction, the pair is likely to find the support near the 127.50/70 zone. There is also a crucial bullish trend line in place with support at 127.60 on the 4-hours chart.

Below the trend line support, the 127.00 level is a decent support area since it coincides with the 50 SMA. Overall, the market sentiment is positive and EUR/JPY is likely to accelerate gains above the 128.50 level in the near term.

GBP/JPY Technical Analysis

The British Pound recently declined below the 140.00 level against the Japanese Yen. The GBP/JPY pair traded as low as 139.91 and later it started an upward move.

The pair climbed higher and broke the 141.00 resistance area along with a bearish trend line on the 4-hours chart. Later, the pair gained momentum and broke the 141.50 resistance and the 100 simple moving average.

GBP/JPY Technical Analysis Pound Yen Chart

Moreover, there was a break above the 50% Fib retracement level of the last decline from the 144.43 high to 139.91 low. On the upside, the next resistance for buyers are near the 143.35 level.

Moreover, the 76.4% Fib retracement level of the last decline from the 144.43 high to 139.91 low is also around 143.50 zone to prevent further upsides. Should there be a break above this, the pair is likely to visit the last swing high at 144.43.

On the other hand, if there is a downside correction, the broken support at 142.00 may well act as a support. There is also a key bullish trend line with support at 141.50 is the next major buy zone.

Overall, both EUR/JPY and GBP/JPY are trading in a positive zone and if buyers remain in control, there could be more gains above 129.00 and 143.00 levels respectively in the near term.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

AUD/JPY Analysis: Rate Falls to Important Support EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. AUD/JPY: Rate Falls

Trader’s Tools

Fixed Exchange Rates: Benefits and Limitations

Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.

Trader’s Tools

Alternative Investment Options

Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.