While the Euro side of the market stayed relatively tranquil, dovish comments from the BoJ’s Uchida have promoted an upside rebound in the EUR/JPY market. The pair had earlier poked through the support at 156.00 but soon retracted upward. Today’s trading session so far has delivered a significant upside correction.
Key Price Levels:
Resistance Levels: 165.00, 170.00, and 175.00
Support Levels: 155.00, 150.00, and 145.00
EUR/JPY Capitalizes on BoJ Dovish Comments
In recent times, the EUR/JPY market has experienced a strong price decline. This was due to a strong bullish sentiment surrounding the Japanese yen, causing a considerable magnitude of price decline in the EUR/JPY market. At this point, the pair continues to trade below all the Exponential Moving Average (EMA) lines.
Yet the market has recovered from the downward correction seen in the past two sessions. Additionally, the Stochastic Relative Strength Index (SRSI) lines can be seen taking an upward path from the oversold region concerning the recent recovery.
EUR/JPY Crosses Above the First Barrier
The EUR/JPY 4-hour market shows that the gains in the ongoing session have just crossed the first 20-day EMA line. This was aided by heightened price volatility in the market. This brought the market through the 20-day EMA line and better positioned it for more upside gains.
Meanwhile, the SRSI indicator lines can be seen in the overbought region. This contrasts with the daily market, where the indicator line is just rising from the oversold region. The SRSI indicator line still has an upward trajectory and, therefore, hints that price action may rise further through the 163.50 mark.
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