Buyers remain in control for EUR/JPY

Keeping Long on EUR/JPY as Uptrend Continues Since April

Posted Saturday, December 10, 2022 by
Skerdian Meta • 2 min read
EUR/JPY has been bullish since April, after the Japanese Yen lost the safe haven status and turned into a risk currency. Back then this pair was trading at around $114.40s after the decline following the tensions in Ukraine in March while lat month this pair climbed above 148.

The JPY has been extremely weak until October 21 when the Ministry of Finance of Japan intervened in the forex market and finally brought an end to the JPY crash. The Bank of Japan is still on hold with inflation remaining relatively low in Japan, while other central banks have been raising rates at an incredible pace and are still continuing to do so, despite giving signals of slowing down recently.

USD/JPY has turned bearish but EUR/JPY is still on an uptrend as it continues to make higher highs and higher lows. During last month we saw a retreat lower, but the 100 SMA (green) held as support on the daily chart above at around $140.60s and this pair has bounced back up.

Comments from the European Central Bank (ECB) members are still sounding hawkish, as they keep pressing on continuing the rate hike saga, although they did start late, in July this year. So, the bullish trend keeps going for EUR/JPY even after the intervention by the BOJ in October.      

EUR/JPY H4 Chart – The 50 SMA Held As Support

The price bounced more than 100 pips higher off the 50 SMA

On the H4 chart above, this pair fell below the moving averages last month but has reversed back up and now moving averages have turned into support. The 50 SMA (yellow) held the retreat earlier today and we saw a bounce which sent the price above 144, but missed the take profit target of our buy EUR/JPY signal.

EUR/JPY H1 Chart – The 200 SMA Has Turned Into Support

The price turned bullish after the doji candlestick above the 200 SMA

In conclusion, the latest quick bounce in EUR/JPY has switched our bias to the upside for this pair. As a result, we are bullish at the moment and have a buy forex signal open at 143.40.

EUR/JPY Live Chart 

EUR/JPY
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