USDJPY has seen a substantial gain of 4.95% rally since the US presidential election, due to the firming of the dollar.
The price has been moving along the upper band of the Bollinger Band indicator post the election, indicating strong bullish momentum.
The trend remains bullish, yet the current price is nearing the mid-term major resistance zone, the pressure above 111.00 will get heavier. The bullish momentum is likely to be restrained at this level.
Also the daily RSI indicator is around 80, and the daily Stochastic Oscillator is above 90, indicating overbought.
The resistance level is at 111.000, followed by 111.50 and 112.00.
The support line is at 110.50, followed by 110.00 and 109.50.
EURJPY has turned bullish since 24th October, trading above the downside uptrend line support.
The resistance level at 116.50 was broken on 18th Nov.
Yet the price is nearing the next mid-term major resistance zone between 118.00 – 118.50, the bullish momentum is likely to be restrained at this level. The price will likely retrace and test the uptrend line support.
The 4 hourly and the daily Stochastic Oscillators are both above 80, suggesting a retracement.
The resistance level is at 118.00, followed by 118.50 and 119.00.
The support line is at 117.60, followed by 117.30 and 117.00.