The EURJPY market was able to regain the previously lost elevated support levels over recent trading sessions. This happened after the market dipped and hit the support level at the 156.00 price level. Meanwhile, the Eurozone doesn’t have much economic data that could assist it in recording more gains; it has sustained above the 165.00 support level. As it is, most of this movement is likely to have been a result of the momentum changes in the JPY’s side of the market.
Key Price Levels:
Resistance Levels: 170.00, 175.00, 180.00
Support Levels: 165.00, 160.00, 155.00
EURJPY May Edge Higher
On the EURJPY 24-hour price chart, it could be seen that price action has leaped through and is now above all Moving Average (MA) lines. Afterwards, prices seem to consolidate a bit while today’s trading activity suggests that price action may be ready to edge higher. The corresponding price candle to the ongoing session has arrived green, suggesting that today’s trading so far has landed moderate gains.
Simultaneously, the 20- and 100-day MA lines are converging for a bullish crossover below price activity. Additionally, the Stochastic Relative Strength Index (Stochastic RSI) lines are now approaching an upside crossover above the 50 level of the indicator. The leading line can be seen strongly deflected towards the lagging one for a crossover, and as such suggests that upside forces may get a boost.
EURJPY Market Prepares to Break the 166.00 Threshold
In the 4-hour EURJPY market, it could be seen that price activity still stands above all the MA lines. Also, the corresponding price candle to the ongoing session is now testing the 166.00 price level with its upper shadow. Similarly, the Stochastic RSI lines converge just below the 80 threshold level of the indicator. However, despite the convergence, the lines of the indicator maintain an upward trajectory.
The upward trajectory aligns with the bullish dominance in the session to suggest that the market may head through the technical resistance just up ahead. With the ECB speeches just ahead, bulls may get stronger should they get some hint of positivity from these Euro policymakers. Therefore, traders can target the 166.50 and 167.00 price levels.
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