The EURJPY market has been finding it an uphill task to rise past the resistance at the 163.50 price level. This may be attributed to the mixed fundamentals on both sides of the market, as the ECB rate decision and the possible interest rate hike by the BoJ have combined to restrict the pair below the 163.50 threshold. Let’s take a closer look at the market below.
Key Price Levels:
Resistance Levels: 164.00, 165.00, 166.00
Support Levels: 163.00, 162.00, 161.00
EURJPY Lacks the Push to Break the 163.50 Resistance
Price activity in the EURJPY market has resulted in presenting only minimal gains below the 163.50 price level. This can be because price forces are awaiting key fundamentals from both sides of the market. Nevertheless, the market stands above the Bollinger Bands middle line.
This keeps the market within reach of upside forces once they resume. At the same time, the Stochastic Relative Strength Index (Stochastic RSI) lines can be seen trending slightly downward through the 80 mark of the indicator. The terminal part of this indicator seems a bit divergent, hinting that bearish volatility may increase. However, the appearance of the last price candle suggests a negative outlook.
The EURJPY Market Sticks to Consolidatory Movement
The EURJPY market has arrived with no different characteristics than those highlighted above. The only difference here is that price movement has been oscillating more clearly, with the resistance at 163.50 and the lowest limit of the Bollinger Bands. Price activity currently lies between the lower and middle bands of the Bollinger indicator.
Likewise, the Stochastic lines are currently in the oversold region. The indicator lines are currently trending sideways, indicating that upside forces aren’t strong at the moment. Therefore, traders will have to monitor the ECB decision and the BoJ rate figure for impetus.
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