Keeping Long on EUR/JPY as Uptrend Continues Since April
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.
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