EURJPY Price: $126 Resistance Level Holds, Consolidation May Continue

EURJPY Price Analysis – December 12

The bulls are struggling to break up the resistance level of $126; the ability to break it up will expose the price to $127 which may eventually place the price at the $130 price level. Should the bulls defend the $126 price level, it may reverse and decline to the support level of $124, $123, and $122.

EURJPY Market

Key Levels:

Supply levels: $126, $127, $130
Demand levels: $125, $124, $123

EURJPY Long-term Trend: Bullish

On the long-term outlook, EURJPY is bullish. The bulls were trying to maintain their momentum in the daily chart. The price hits the resistance level of $126 on December 02. The level stands as a key resistance to the price as it has tested the level more than three times and the bulls have not enough momentum to break up the level. The bears equally have no enough pressure to push the price downside, then the price began consolidation last week around the $126 resistance level.

The pair retains its position above the two EMAs as an indication of the bullish movement. The price is trading above the 9 periods EMA and 21 periods EMA. The bulls are struggling to break up the resistance level of $126; the ability to break it up will expose the price to $127 which may eventually place the price at the $130 price level. Should the bulls defend the $126 price level, it may reverse and decline to the support level of $124, $123, and $122.

EURJPY medium-term Trend: Ranging

The bulls were fully in control of the market two weeks ago and the resistance level of $126 was reached. The bulls lose momentum and the bears’ pressure is low. The price may reverse at the $126 level provided the bears increase their momentum and the price will decline towards the $125 price level.

The price is consolidating at the $126 resistance level with the two EMAs interlocked to each other as a symbol of a ranging market. The relative strength index period 14 is bending down to indicate a sell signal.