- Nov 22, 2014
- Reaction score
EURJPY TECHNICAL ANALYSIS
EURJPY pair moved significantly in bullish condition at the end of the trading session last Friday.
During the week journey, the pair tended to be in an uptrend, after the price had gone to the support level of 120,139 where it was marked by the price is in the lower band, and bounced back up so that it headed to the middle band that functioned as resistance.
However, it seems that the middle band is not a valid resistance where a broken line has occurred.
Meanwhile, the Bollinger band line has begun to narrow or squeeze, which could be an indication of weakening volatility.
We know that Bollinger bands measure volatility, the wider the distance between bands, the higher the volatility.
While the RSI gives a clue that the price is above the 50 points, meaning that the trend is likely to rise, but it has not yet reached the overbought zone.
Based on the RSI indicator, the overbought area if the indicator has shown is above 70, while the RSI currently shows 55
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