The most recent rebound off the technical support at the 168.00 threshold seems to have placed the EURJPY market on a path toward the 171.00 threshold. Technical indicators are also positively aligned at the moment, suggesting the move could get stronger as trading continues.
Key Price Levels:
Resistance Levels: 170.00, 172.00, and 174.00
Support Levels: 168.00, 166.00, and 164.00
EURJPY’s Price Action is Receiving Bullish Support
Sentiments concerning the EURJPY are in favor of a continued upside retracement. The HCPI and improved economic sentiments are ensuring that upside forces remain strong in the market. The current session can be seen taking place above the 20-day Exponential Moving Average (EMA) line, which lies above all the other EMA lines.
Additionally, the corresponding price candle suggests that upside forces are still propelling the market. The Moving Average Convergence Divergence (MACD) indicator lines are now approaching each other for a bullish crossover at the equilibrium level. The bars of the indicator are steadily getting shorter while appearing pale red, indicating that downward forces are progressively losing control over price movement.
EURJPY Choppy Characteristics Favor the Bulls
Transitioning to a EURJPY 4-hour market, we can see that the choppy characteristics of price movement are more pronounced. Nevertheless, price action continues to move upward toward the targeted resistance. The last dash-shaped price candle for the ongoing session can still be seen appearing above the 20-day EMA line.
Likewise, the MACD lines are now proceeding upward from below the equilibrium level following a bullish crossover. The bars of the mentioned indicator still appear solid green, affirming that upside forces are strong and potent enough to propel price action further. Therefore, traders can still keep 171.00 as their target in this market.
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