EUR/JPY forecast for March 25, 2021
Looking at the graph on the weekly time frame, we see that 130.00 makes a pullback to the Fibonacci retracement level at 61.8% after testing the psychological level. Here we can easily expect the EUR/JPY pair to bounce and move up again towards 130.00 and then move towards 132.00 to a new multi-year level.
For now, the pullback is in effect, and if it continues further, we are looking for support at 127.00, the place of the previous break outside the zone, and the place where we will meet the moving averages, and they are still on the bullish side. Slowed vaccination and disagreements among eurozone countries and continued lockdown in most European countries slow the euro against the Japanese yen.
On the daily time frame, we see that the EUR/JPY pair finds support at 128.40 with the lower trend line’s help but with little resistance to the moving averages MA20 and EMA20, which are an obstacle for us to continue the bullish trend. We will likely see continued consolidation upwards because the EUR/JPY pair generally has better support from the bottom than the top’s resistance. So we can expect to see the EUR/JPY pair again above 130.00 in some shorter next period. If the Euro does not withstand the bearish scenario’s discounts, we need a break below MA50 and the trend line as a stronger signal on the chart to continue to the bearish zone towards 128.00 and 127.00, a place where we had good support in the previous period.
We see a smaller drop channel on the four-hour time frame and how the EUR/JPY pair consolidates within it. From 130.50, we dropped to 128.50, where the EUR/JPY pair found support in the moving averages MA200 and EMA200, while MA20, EMA20, and MA50 are on the bearish side for now with the probability that they will soon become support as the pair after rejection is heading towards 129.00, and if it does break we go to 129.50. a drop below 128.50 and negative consolidation pulls us down towards 128.00 and then towards 127.50, looking for better support on the chart.
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