While the Eurozone seems relatively quiet on the fundamental front, the Japanese yen appears more active. Consequently, this has created some headwinds in the market, driving it lower. At this point, price action has broken through a key support level. Let’s see how the market may proceed from here.
Key Price Levels:
Resistance Levels: 160.00, 165.00, 170.00
Support Levels: 155.00, 150.00, 145.00
EUR/JPY Bears Look Threatening
Price activity in the EUR/JPY market has continued downward ever since the market failed to rise past the red set of the Guppy Multiple Moving Average (GMMA) lines. The market proceeded to test a previously respected support level at the 157.73 mark.
The market eventually broke through that support level and seems ready to progress further. As a result, trading activity continues to occur below all the GMMA indicator lines. Additionally, the Stochastic Relative Strength Index (Stochastic RSI) lines are merged in the oversold region but do not seem to be rising out of that area.
Bearish Dominance in the EUR/JPY Market Persists
The EUR/JPY market on the 4-hour chart reveals that bears are still maintaining their dominance. Price action has broken through the support level at the 158.73 mark in the past two sessions. Both the previous session and the ongoing one seem ready to advance bearish gains below the 157.73 price level.
Price action remains below the GMMA lines, and the Stochastic RSI lines continue to dive deeper into the oversold region. Technically, it seems possible that bears may keep up the pressure toward the next psychological price level at 150.00, ahead of Euro economic data due by Thursday.
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