The EURJPY pair has continued to retrace higher price levels. Consequently, this saw prices in this market surpass the 155.50 price mark about seven trading sessions ago. It is therefore imperative to examine what may soon happen in this market.
Major Price Levels:
Resistance Levels: 158.00, 159.00, and 160.00
Support Levels: 157.50, 156.50, and 155.50
EURJPY Eyes Support at the 156.48 Price Level
Price action in the EURJPY market broke through the previously respected price resistance level. Subsequently, it also surpassed the 156.00 and 157.00 thresholds. However, as it approached the 158.00 price mark, a minimal downward price correction occurred.
Moving on, the observed price correction could have been neglected, but the indications ensuing from the Moving Average Convergence Divergence (MACD) indicator suggest that upside momentum is weakening. Although the lines of this indicator are above the equilibrium level of 0.00, its bars are now pale green.
Consequently, this suggests that bulls are tiring, bears may grow more confident, and the correction grows into a retracement.
EURJPY’s Downward Prospects Are Strengthening
Extending this price analysis to a much smaller frame, we can perceive that the price downward propensity is increasing. Over the past four trading sessions here, bears seem to have been the most dominant.
Meanwhile, the last price candle that represents the ongoing session is a red one and is plunging prices closer to the 9-day Moving Average curve as support. At the same time, a bearish crossover can be seen on the Stochastic Relative Strength Index (RSI) indicator.
The display on the RSI implies that bears are bound to get stronger at this point. Consequently, this price correction may extend to the 157.00 price mark. Consequently, traders can expect a retracement towards the 1.2700 mark.
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