Political matters, such as the French election, seem to have offered a boost for the EURJPY pair. This could be seen as the market rallied through the 172 and 173 price levels. Although the market still stands a chance for an upside extension at this point, the market has posted a decline in bullish momentum. Let’s try to see how it goes shortly.
Key Price Levels:
Resistance Levels: 174.00, 175.00, and 176.00
Support Levels: 173.00, 172.00, and 171.00
EURJPY May Retreat Towards Technical Support at the 173.00 Mark
Tailwinds in the EURJPY market have propelled the market through multiple technical resistance levels at the 171, 172, and 173 price marks. However, today’s trading activity so far has demonstrated that the market may have hit a stop. The corresponding price candle for the ongoing session has appeared above all the EMA lines like an inverted hammer price candle.
Technically, the appearance of such a price candle at the end of an uptrend signals a bearish reversal. Simultaneously, the Moving Average Convergence Divergence (MACD) indicator lines can be seen already above the equilibrium level. Nevertheless, the last bar of the MACD signals declining upside momentum, so traders should tread carefully at this point.
The EURJPY Market Closes in on the 173.00 as a Support
In the 4-hour EURJPY market, one can see that price movements have continued to descend towards the 173.00 mark. This hints that downward forces may attempt to sink the market below this support shortly. The lack of surprise from the Eurozone CPI may aid the above-stated opinion.
Furthermore, although the market stands above all the EMA curves, the behavior of the Stochastic Relative Strength Index (SRSI) indicator lines doesn’t speak well of an upside rebound at this point. The lines of the SRSI indicator have continued downward following an earlier failed crossover. The SRSI lines are still above the 50 level of the indicator, but the divergent look of the indicator lines suggests that the downward correction may extend toward 172.50 in the meantime.
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