The EURJPY pair continues to dip, as it seems that the Japanese yen is providing the market with the driving force. This has caused bullish traders to incur significant losses in recent trading sessions. Meanwhile, today’s trading activity has brought some minor upward corrections, which still seem vulnerable at the moment.
Key Price Levels:
Resistance Levels: 170.00, 175.00, and 180.00
Support Levels: 165.00, 160.00, and 155.00
EURJPY Price Falls Below the 50-day EMA Curve
EURJPY’s price action fell sharply below the 50-day Exponential Moving Average (EMA) line in the previous session, as expectations that the Bank of Japan (BoJ) will tighten monetary policies have spooked investors and caused them to rally behind bearish bets. Meanwhile, price action seems to have paused today, following the appearance of a small green price candle on the price chart.
This keeps the market between the four EMA lines on the chart. The Stochastic Relative Strength Index (SRSI) lines can be seen taking a slight downward turn even after reaching deep into the oversold region. This suggests a continued bearish outlook, and investors will need to pay more attention to fundamentals.
EURJPY Upside Correction More Significant but Below All the EMA Curves
The EURJPY 4-hour market shows all price candles below the EMA curves. The SRSI indicator lines are deep in the oversold region. The last price candle on the chart, which indicates the ongoing session, seems to have placed the current price of the pair above that of the previous session.
Additionally, the SRSI indicator has taken an upward trajectory following a crossover deep in the oversold region. Consequently, it appears that upside forces are trying to gain more strength. However, anticipating a continued upward correction towards the 170.00 mark requires more support from fundamentals.
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