Review EUR/JPY 06.04.2018
Fundamental analysis: since mid-February, the currency pair has entered a relatively narrow price corridor of 132.000-129.000, and has not yet got out of it. For a year, from April 17, 2017, the medium – term trend is bullish. Perhaps what we are seeing now is attempts to reverse the trend. After the "peaks" on 137.503 price go down. There is no important news on the European Union and Japan today, but the BOE's Governor Mark Carney speech and Fed's Jerome H. Powell Speech - should be taken into account. We all remember last year's volatility, including EUR, on Brexit news.
Technical analysis: long-term trend since 2012 is bullish. On the H1 chart, the «Alligator» indicator has «closed its jaws», indicating a state of uncertainty. Over the past few weeks, there have been three false breakouts of the resistance level at 131.500, and now the price is again near this mark.
Trading recommendations: near the strong resistance level and the psychologically important mark 131.500, powerful price movements are likely, we will try to use this to make a profit. Long positions - with a reliable breakdown of this level. Short positions when the price rebounds and moves below 130.500.
Sincerely, Sergey Ryazantsev - financial analyst of brokerage company AMEGA