EURJPY price action has broken through the price resistance level at the 152.01 price mark. Afterward, price action proceeded to test the new resistance price mark at the 155.49 price mark. As of now, price action lacks the thrust to break this new resistance and has bounced off it.
Major Price Levels:
Resistance Levels: 155.50, 156.00, and 157.00
Support Levels: 154.40, 153.50, and 152.00
EURJPY May Extend Losses Towards the 153.00 Mark
On the EURJPY daily market, price action has bounced off a strong resistance level. Although price movement remains above the 9- and 21-day Moving Average (MA) lines, it appears that a headwind may cause a significant price downward retracement in this market.
The last price candlestick here appears significantly larger and has plunged prices lower toward the 9-day MA lines as a support level. Also due to the downward correction in price movements, the lines of the Relative Strength Index (RSI) are now trending downward and towards the 80 mark of the indicator.
Considering all these factors, traders should prepare for a further price decline in this market.
Bears May Have Gotten a Need Grip of the EURJPY Price Movement
Zooming into the EURJPY 4-hour market, it is revealed that downward forces are strengthening. Also, based on the signs coming from technical indicators, price action may have taken on a fairly bearish tone in this market.
The last price candle on this chart has fallen below both the 9- and 22-day MA lines. And such activity suggests that a significant price retracement may occur in this market. Even the Relative Strength Index (RSI) indicator has fallen into the oversold region.
Also, the lines of the RSI look mangled in the oversold region. Even the terminal part of it can be seen trending further downward into the oversold zone of the indicator. Therefore, traders can anticipate a retracement of the price level at the 153.00 mark.
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