Price activity in the EURJPY has renewed bearish momentum after failing to continue its upside retracement through what seems like a very strong resistance at the 164.00 mark. Consequently, it seems like the bulls are out of breath and are taking a break to gather some. Let’s try to find out what may happen in this market.
Key Price Levels:
Resistance Levels: 158.52, 160.00, and 162.00
Support Levels: 156.50, 155.00, and 154.00
EURJPY Tears Down Support at the 159.00 Mark
In the daily EURJPY market, the pair’s sentiment seems to have turned sour, because the ongoing session has presented the biggest losses considering the length of the price candle representing it. This has brought the pair to revisit a once-excited price range mark.
Furthermore, with price action hugging the lowest limit of the Bollinger Bands, it could be seen that the Moving Average Convergence Divergence (MACD) indicator suggests that the bears are gaining more strength. This could be seen as the last bar of the indicator has turned solid red in appearance and is below the equilibrium level. Consequently, this further strengthens bearish hopes in this market.
Bulls Stay Pressured in the EURJPY Market
A minute upside correction can be noticed off the lowest limit of the Bollinger Bands indicator that has been applied on the EURJPY 4-hour market. Here, the last price candle looks quite similar to an inverted hammer price candle, only that its body seems too small. Also, it is still very close to the lowest band of the Bollinger Bands indicator.
Likewise, the MACD lines can be seen converging for another bearish crossover below the equilibrium level. Consequently, this reveals that downward forces may renew their strength, thereby causing further downward correction towards the 155.40 mark.
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