While the financial market has been significantly impacted by political turmoil in France and South Korea, slightly better PMIs seem to have assisted the EURJPY pair in recording some bullish retracement. This saw the pair resume trading above the 157.73 level. However, the daily chart still shows price movement below technical landmarks, so let’s see how things may proceed in this market.
Key Price Levels:
Resistance Levels: 160.00, 165.00, 170.00
Support Levels: 155.00, 150.00, 145.00
EURJPY Bull Takes a Brave Stand Against Bears
Headwinds have dominated the EURJPY daily market for a considerable length of time. This has caused the market to descend rapidly through multiple technical support levels. As a result, the pair now trades below all the Moving Average (MA) ribbons on the price chart. Nevertheless, today’s trading session has successfully retained a considerable amount of gains, considering the size of the corresponding price candle.
At the same time, the Stochastic Relative Strength Index (RSI) lines have delivered a bullish crossover in the oversold region of the indicator. The resulting lines of the indicator are still in the oversold region but have an upward trajectory, hinting that upside forces are still in the lead and may keep the market going above the 157.73 price level.
EURJPY Upward Retracement Has a Layer of Protection
The EURJPY market can be seen to have risen past the 20-day MA line. However, price action can be seen to have corrected a bit downward but still stays above the 20-day MA curve. Likewise, the Stochastic RSI lines are currently in the oversold region of the indicator. But these lines are falling slightly toward the 80 mark of the indicator.
Technically, this suggests that the upward retracement in the market can still be assumed to be preserved since the market trades above the 20-day MA line. The mentioned indicator line can still offer an upward rebound. Nevertheless, the upward retracement still seems vulnerable, seeing that the market lies below all three of the MA lines. As such, this market may proceed toward the 156.00 price level in subsequent sessions.
Do you want to take your trading to the next level? Join the best platform for that here
Leave a Reply