EUR/JPY: Using MA and MACD Indicator
Currently, we are closely monitoring the EUR/JPY currency pair, patiently waiting for the price action to approach the resistance zone. To gain a comprehensive understanding of the market sentiment, we rely on two key technical indicators: the Moving Average Convergence Divergence (MACD) and the Moving Average (MA).
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Examining the MACD, we observe that the histogram candles are displaying a green color, indicating a prevailing buy pressure in the market. Moreover, the MACD line has crossed above the signal line, further supporting the notion of a potential uptrend. This alignment suggests the presence of positive momentum in the market, potentially driving prices higher. In addition, we analyze the Moving Average indicator, where both the MA line and the smoothing line are positioned beneath the candlesticks, it means that the MA and smoothing lines below the candlesticks may act as resistance levels. If the price attempts to move upward and reaches these lines, it could offer resistance to further price appreciation. Furthermore, the MA line has recently cut above the smoothing line, signaling a bullish crossover. This crossover strengthens the indication of a potential upward movement in the EUR/JPY exchange rate. In light of these technical signals, we remain vigilant and await the price action to approach the resistance zone. A successful breach of this zone, coupled with the positive indications from the MACD and Moving Average, could offer a more favorable entry point for traders looking to take advantage of potential upward movements in the EUR/JPY currency pair. However, as always, it is crucial to consider risk management strategies and stay updated on market developments to make informed trading decisions.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.
