While the EURJPY market has made commendable progress past the 170.00 threshold, the market seems to have hit strong resistance at the 174.70 price level. Consequently, the market has been facing difficulty progressing further since it last tested the 174.70 resistance. At this point, it appears that the market is anticipating complementary fundamentals from the JPY Producer Price Index (PPI). This may prove useful in giving further impetus to this market.
Key Price Levels:
Resistance Levels: 175.00, 180.00, and 185.00
Support Levels: 170.00, 165.00, and 160.00
EURJPY Consolidates Around the 174.70 Threshold
Buyers in the EURJPY market have seen the market stay green since last week. This saw the market sustain itself above the previous resistance at the 171.55 price level. The market now seems to be facing a new challenge of breaking a more technical resistance at approximately the 175.00 threshold.
However, market forces from both sides of the market seem exhausted, but upside forces are straining to stay in the lead, as revealed by the appearing price candles. Nevertheless, the market continues to trade above the Exponential Moving Average lines. Likewise, the Moving Average Convergence Divergence (MACD) lines are still above the equilibrium level, while the bars of the indicator are now pale green. This affirms the weakness of upside forces in the market.
EURJPY Prints Minimal Losses But Stays Afloat
The EURJPY 4-hour price chart has revealed that price action has seen a minimal price decline in the ongoing session. The last price candle on the chart has appeared red, but it keeps the market above all the EMA lines. The resistance at 174.70 has once again shown its strength as the previous session bounced off it, causing a downward contraction of prices.
The MACD bars below the equilibrium level have been appearing pale red for a while. Also, the lines of the indicator have been trending sideways since being above the equilibrium level. This points to the fact that the market is ranging. However, the arrival of the JPY PPI data will dictate if the market will progress downward, through the 20-day EMA curve, or if upside retracement will continue towards the 176.00 threshold.
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