Over the recent past, the EURJPY market has recorded notable upside correction. However, the market has, as of today, seen a sharp downward retracement that brought the market below key technical levels. This seems to be the aftermath of the emergence of the seasonal EUR trade surplus, which arrived lower than the previous. Let’s take a closer look at the market below.
Key Price Levels:
Resistance Levels: 162, 164, 166
Support Levels: 160, 158, 156
EURJPY Rebounds off the 162.00 Threshold Level
The ongoing session in the EURJPY daily market has rebounded strongly downward off the technical resistance at the 162.00 price level. The mentioned downward retracement has erased all the recorded gains from the previous session. Despite this, price action remains above the 20-day MA line on the chart, even as the market has fallen below the 100-day Moving Average (MA) line.
The Stochastic Relative Strength Index (RSI) lines are still in the overbought region but have a slight downward trajectory. Technically, this hints that downward forces are prevailing at the moment and may produce more price declines.
Upside Forces in the EURJPY Market Try to Maintain Upside Trajectory
In the EURJPY 4-hour market, we can see that price activity has a general upward trajectory. Although there have been a few stops along the way as price action rebounds off the floor of the upward-sloping price channel. Price action had rebounded off the ceiling of the upward-sloping price channel in the past five sessions.
The market subsequently declined very sharply until the ongoing session. The last price candle is currently suggesting that price forces are in a face-off. Meanwhile, price action stands above the 50- and 100-day MA curves, while the Stochastic RSI lines have fallen sharply into the oversold region. Nevertheless, market participants can anticipate an upward rebound toward the 162.00 price level.
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