FBS: Trading recommendations for EUR/JPY
Tatiana Norkina, an analyst at FBS
Currency pair holds above 138.50 support. The bulls try to strengthen over 138.75 today.
A noticeable narrowing of the channel formed by the Bollinger Bands is observed but overcoming local resistance in the 139th figure pair is not possible yet. Perhaps taking this height would add optimism to the market and prices may recover to the next important level of 139.45.
Oscillators note loss of interest of market participants to the currency pair. The MACD histogram is around zero, showing minimum values. RSI is also in the middle of the channel, moving in a lateral direction, with a tendency of increase, though.
Therefore, while keeping the support of 138.75 it makes sense to be on the side of the purchasers. Otherwise the lows update is possible.
Technical levels: Support - 138.50, 138.75; resistance -139.20, 139.45.