EURJPY May Increase Further to Test Resistance Level of $128

EURJPY Price Analysis – January 08

The increase in the bulls’ momentum may break up the $128 resistance level, and this may push the price to $131 and $140 price level. In case the resistance level of $128 holds, the price may reverse and descend to the previous low of $124 and $122 provided the support level of $126 does not hold.

EURJPY Market

Key Levels:

Supply levels: $128, $131, $140
Demand levels: $126, $124, $122

EURJPY Long-term Trend: Bullish

The Bulls are holding onto the EURJPY market on the daily chart. The currency pair was ranging around the resistance level of $126 last week; this ranging movement lasted for more than ten days. On January 06, the bulls gained more momentum and the pair was pushed up to break the resistance level at $126. The currency pair is moving towards the direction of the $128 resistance level. Today, the bears dominate the market with the formation of the daily bearish candle.

The 9 periods EMA has crossed the 21 periods EMA upside and the price trading above the two EMAs which indicates that the bulls’ momentum is increasing in the EURJPY market. The increase in the bulls’ momentum may break up the $128 resistance level, and this may push the price to $131 and $140 price level. In case the resistance level of $128 holds, the price may reverse and descend to the previous low of $124 and $122 provided the support level of $126 does not hold.

EURJPY medium-term Trend: Bullish

GBPUSD is bullish in the medium chart. When the price touches the resistance level of$126 twice, the level holds the price at the first and second attempts. At the third attempt, there was a fake breakout at the $126 price level and it returns to the previous consolidation zone. The price broke out yesterday and gradually increasing towards the $128 level.

There is a tendency for the price to continue increasing as the price is trading above the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is pointing down at 50 levels which indicates a sell signal which may be a pullback.