EURJPY Regains Bullish Traction as Euro Core Inflation Drops

Following a steep dive in the EURJPY market, buyers seem to have used the dip to start buying into the market. This seems to stem from bullish sentiment surrounding the pair, as eurozone core inflation dropped and the BoJ is less likely to raise super-low interest rates. Consequently, this appears to have returned the pair to its upside path.

Key Price Levels:
Resistance Levels: 169.00, 170.00, and 171.00
Support Levels: 168.00, 167.00, and 166.00

EURJPY Buyers Seem to Have Picked a Target at the 170.00 Mark

The previous session on the daily EURJPY chart brought a considerable downward correction. This plunged the market below the green Guppy Multiple Moving Average (GMMA) lines. Nevertheless, today’s trading activity seems to have welcomed some buying, which caused the pair to recover considerably from previous losses.

Ordinarily, this signals that traders may be considerably bullish on the pair. Consequently, price action has returned above the GMMA lines. Meanwhile, the Stochastic Relative Strength Index (SRSI) lines are still plunging towards the 50 mark of the indicator. However, considering the fundamentals surrounding the pair at present, traders might want to maintain the use of bullish Forex signals.

EURJPY Traders Are Growing More Confident

Coming to the EURJPY 4-hour market, we can see that the influence of buyers is significant. Here we can see that the previous session appeared as a bearish price candle. Nevertheless, considering the overall price movement, it could be perceived that bulls were still able to cause some recovery, as the corresponding price candle formed above the previous bearish one (two sessions ago from the current session).

The ongoing session has appeared above the GMMA lines. Also, a bullish crossover can be seen on the SRSI indicator deep in the oversold region. Summing up signs coming off technical indicators and prevalent fundamentals, a target at 170.00 seems feasible pending any contrary fundamentals.

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