Booking Profit on EUR/JPY As it Bounces Off the 50 SMA

EUR/JPY retraced lower yesterday, but the 50 SMA held well as support and today this pair bounced higher

The bullish momentum continues for EUR/JPY

EUR/JPY has been really bearish for more than two years, but since early May this pair has been trending higher, gaining around 10 cents in total. Although, this looks like a pullback during the larger bearish trend, but as long as it keeps going, we will keep playing the upside in this pair.

The price moved above moving averages in June and the 50 SMA (yellow) turned into support on the H4 time-frame chart. In the first half of June EUR/JPY went through a decent pullback lower, giving back 50% of the gains from the bullish move in May.

The 100 SMA (green) turned into support for some time, but it was eventually broken and the price moved above all MAs once again in this time-frame. Moving averages turned into support, with the 50 SMA pushing the price higher during pullbacks. Yesterday we saw another pullback to the 50 SMA and decided to op[en a buy forex signal, which was closed in profit a while ago as this pair resumed the bullish move. So, the near term trend remains bullish in EUR/JPY and we will try to pick the retraces lower again.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers