EURJPY Price: Bullish Breakout at $126 Resistance Is Expected

EURJPY Price Analysis – December 19

The price may reverse at the resistance level of $126 should the level is defended by the bears. EURJPY will decline towards the support levels of $125, $124, and $23. The breakup of the resistance level of $126 may push the price to $127 and $139 resistance level.

EURJPY Market

Key Levels:

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

EURJPY Long-term Trend: Ranging

EURJPY is ranging on the daily chart. The bulls were in control of the EUJPY market since December 01 after it breaks out of the descending channel. The price increases towards the key resistance level after it penetrates the $125 price level upside. The price reached the just mentioned level on December 02. The level holds the price and it could not break it up. This scenario brought about the consolidation of the price at the resistance level of $126.

Yesterday, there was a fake breakout at the 126 resistance level but the bulls’ momentum could not maintain the breakout, it then falls back below the $126 level. The price may reverse at the resistance level of $126 should the level is defended by the bears. EURJPY will decline towards the support levels of $125, $124, and $23. The breakup of the resistance level of $126 may push the price to $127 and $139 resistance level.

EURJPY medium-term Trend: Ranging

The price broke out of the descending channel and rally towards the resistance level of $26 after it penetrates the $125 price level. The bulls push the price to reach the resistance level of $26. The bulls’ momentum became weak and could not break up the level. On December 18, the price breaks the mentioned level but the bears opposed the move and the price pullback to test the broken level.

At the moment, 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 up to indicate a buy signal.