EURJPY Price: Interruption of Bulls at $127 Resistance Level May Decrease Price to $124

EURJPY Price Analysis – January 15

The increase in the bears’ momentum may reduce the price further to the support level of $124 support level, and this may push the price to $122 and $120 price level. In case the support level of $124 holds, the price may reverse and increase to the previous high of $127 and $130 provided the resistance level of $126 does not hold

EURJPY Market

Key Levels:

Supply levels: $126, $127, $130

Demand levels: $124, $122, $120

EURJPY Long-term Trend: Bearish

EURJPY is bearish on the daily chart. The currency pair was under the pressure of the bulls last week. The price closed above the resistance level of $126 and it was trying to break up the resistance level of $127.  The bullish pressure fails and the bears take over the market. The price is decreasing towards the support level of $124 after it breaks down the support level of $126.

EURJPY Daily chart, January 15

The 9 periods EMA has crossed the 21 periods EMA downside as an indication of bearish momentum. The price is trading below the two EMAs which indicate that the bears’ momentum is increasing in the EURJPY market. The increase in the bears’ momentum may reduce the price further to the support level of $124 support level, and this may push the price to $122 and $120 price level. In case the support level of $124 holds, the price may reverse and increase to the previous high of $127 and $130 provided the resistance level of $126 does not hold.

EURJPY medium-term Trend: Bearish

GBPUSD is bearish in the medium chart. The bulls were unable to push up the currency pair to the resistance level of $128 before the bears interrupted on January 08. The bears increased their momentum and the price turns downside, the former support level of $126 turns to resistance level and the price is descending towards the support level of $124.

EURJPY 4 hour chart, January 15

There is a tendency for the price to continue decreasing as the price is trading below the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is pointing down at 20 levels which indicate a sell signal and further price reduction.