EURJPY Price Analysis – November 27
The breakdown of the two dynamic support levels may send the price to the previous low at $122 level. Further increase in the sellers’ pressure may break down the level and the price decline to $121 and $120 level. Above the current price, the levels of resistance were found at $124, $125, and $126 price level.
EURJPY Market
Key Levels:
Supply levels: $124, $125, $126
Demand levels: $122, $121, $120
EURJPY Long-term Trend: Bearish
EURJPY is bearish in the daily chart. On 20 November, the price sits on the support level of $122. The bearish momentum fails and could not break the level downside. The bulls gain more pressure on November 23 and the daily candlestick that emerges engulfs the previous daily candle as an indication of bullish strength increase. EURJPY price increase and hits the resistance level of $124. There is a strong confluence at the level which prevents further price increase. Yesterday, the daily candle was bearish likewise the daily candle that emerges today is bearish which connotes that the sellers are ready to take over the market.
The currency pair is preparing to cross the two EMAs downside as an indication of the bearish movement. The 9 periods EMA and 21 periods EMA are directly in contact with the two EMAs. The breakdown of the two dynamic support levels may send the price to the previous low at $122 level. Further increase in the sellers’ pressure may break down the level and the price decline to $121 and $120 level. Above the current price level is resistance found at $124, $125, and $126 price level.
EURJPY medium-term Trend: Bearish
The bearish movement continues in the EURJPY market. The price action is trying to form a ‘” M” shape pattern. The pair continues to trade within the descending channel formed. The price bounces off the resistance level of $124 and the price is declining towards the support level of $121.
The momentum of the bulls is getting weaker and the price is crossing the dynamic levels downside. The price is trading below the two dynamic support levels and the relative strength index period 14 is bending up to indicate a buy signal which may be a pullback.