Price activity in the EURJPY market has rebounded from the price ceiling level at the 164.00 mark. This seems to be the result of the Japanese CPI data, which arrived better than anticipated. Meanwhile, the Euro side remains uneventful, lacking counterbalancing fundamentals.
Key Price Levels:
Resistance Levels: 163.00, 164.00, and 165.00
Support Levels: 162.87, 162.00, and 161.00
EURJPY Eyes the 162.00 Baseline
As price action bounced off the resistance at the 164.00 price mark in the EURJPY daily market in the previous session, the current session has shifted the focus of the market towards a support level at the 162.00 mark. The downward correction appears quite sharp, suggesting that the downward forces may be strong at this point. Nevertheless, price activity remains above the middle limit of the Bollinger Bands.
However, the Stochastic Relative Strength Index (RSI) lines have undergone a bearish crossover in the overbought region. Additionally, the indicator lines aren’t highly active, suggesting that downward forces may be strong enough to push price action towards the 162.00 support level. Therefore, traders may want to align with bearish forex signals in this market.
EURJPY Maintains Downward Focus
In the EURJPY 4-hour market, we can observe that price activity has crossed below the equilibrium level. This suggests that downward forces may be quite strong in this market.
Likewise, the Stochastic Relative Strength Index indicator lines have produced a downward crossover, with the leading line falling sharply below the 50 mark to 44.77, while the lagging line remains above the 70 mark. The significant gap between the two indicator lines suggests that downward pressure may lead the market to eventually reach the 162.00 mark.
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