Currency pair Euro Yen EUR/JPY completes the trading week near the level of 129.72. The pair continues to move within the correction and left the bullish channel. Moving averages indicate a bullish trend. Prices have broken the area between the signal lines upward, which indicates pressure from buyers of the currency and a potential continuation of the growth of the instrument. At the moment, we should expect an attempt to raise the price and test the resistance area near the level of 130.45. Further, a rebound downward and an attempt to continue the fall of the pair with a potential target below the level of 121.75.
EUR/JPY Weekly Forecast December 27 — 31, 2021
An additional signal in favor of the fall of the Euro Yen currency pair will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel, which was broken down by the bears. Cancellation of the EUR/JPY fall option will be a strong price growth and a breakdown of the 134.05 area. This will indicate a breakdown of the resistance area and continued growth of the pair on Forex with a target above the 137.05 area. Confirmation of the pair’s fall in the current trading week December 27 — 31, 2021 will be a breakdown of the support area and closing of quotations below 126.55.
EUR/JPY Weekly Forecast December 27 — 31, 2021 therefore suggests an attempt to test the resistance level near the 130.45 area. Then, the continuation of the fall of EUR/JPY to the area below the level of 121.75. A test of the trend line on the relative strength index (RSI) will be in favor of the decline. Cancellation of the EUR/JPY fall option will be a breakdown of the resistance area and closing of quotations above the level of 134.05. This will indicate a continued rise in the pair with a potential target above the level of 137.05.
