The EURJPY has recently rebounded from the 163.50 support level. However, upward momentum has been hindered by factors such as the collapse of the German government coalition. As a result, price action has been steadily losing momentum. With Japan’s inflation exceeding the Bank of Japan’s target, there is a possibility of interest rate hikes, which could further pressure the pair.
Key Price Levels:
Resistance Levels: 165.00, 168.00, 170.00
Support Levels: 163.50, 161.00, 160.00
EURJPY Upward Rebound Fades
As noted above, price action in the EURJPY daily market had rebounded off the 163.50 support level. However, the momentum with which the market is progressing seems dampened. The last price candle on the chart can be seen appearing just above the 100-day Moving Average line.
Also, this price candle can be seen as having a tiny body, reflecting the reduced upward momentum. Meanwhile, the Stochastic Relative Strength Index (RSI) lines have just delivered a bullish crossover in the oversold region. This corresponds to the upward rebound and, as such, suggests that upside forces may extend their dominance. Nevertheless, it is necessary to take a closer look at price developments.
Are Upward Forces in the EURJPY Market Yielding?
Price activity in the EURJPY 4-hour market can be seen turning progressively sideways. The last price candle on this chart can be seen now appearing red. This suggests that downward forces are now gaining control of the market. Albeit the pair stands above the 20-day MA line.
The Stochastic RSI lines are in the overbought region and are now merged. The merged Stochastic RSI lines seem ready to trend sideways. This will give room for upside forces to propel the market higher toward the 165.00 price level. However, traders should monitor emerging economic data that may affect the market..
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