EURJPY Price Is Testing a Potential Bearish Reversal Zone

EURJPY Price Analysis – January 30

In case the bulls increase their momentum, the $127 resistance level may be penetrated, and this may push the price to $128 and $130 price level. Should the resistance level of $127 holds, the price may retrace and descend to the previous support level of $124 and $122 provided the support level of $126 does not hold.

EURJPY Market

Key Levels:

Supply levels: $127, $128, $130

Demand levels: $126, $124, $122

EURJPY Long-term Trend: Bullish

The currency pair is bullish on the daily chart. EURJPY maintains its bullish pattern throughout completed week as it was predicted. After the second touch at the support level of $125, the price bounced and soared towards the resistance level of $127. The resistance level of $126 could not hold the price as the bull’s momentum is stronger than the barrier at the level.

EURJPY Daily chart, January 30

The 9 periods EMA has crossed the 21 periods EMA upside and the price is trading above the two EMAs which indicate that the bulls’ momentum is increasing in the EURJPY market. In case the bulls increase their momentum, the $127 resistance level may be penetrated, and this may push the price to $128 and $130 price level. Should the resistance level of $127 holds, the price may retrace and descend to the previous support level of $124 and $122 provided the support level of $126 does not hold.

EURJPY medium-term Trend: Bullish

EURJPY is bullish in the medium chart. The price played out as it was suggested last week. The double bottom chart pattern formed by the price action on 4 hour chart was completed before the market closed yesterday. The target of resistance level at $127 was met.

EURJPY 4 hour chart, January 30

There is a tendency for the price to pullback towards the support level at $126 before bullish trend continues. The price remains above the 9 periods EMA and 21 periods EMA as a bullish signal. The relative strength index period 14 is pointing down above 60 levels which indicate a sell signal.