EURJPY Price May Pull Back Further Before Bearish Movement Continue

EURJPY Price Analysis – October 02

Further increase in the bears’ pressure may penetrate the demand level of $122 downside which may decrease the price further to $121 and $122 demand levels. The rejection of the price at $122 price level may push the price up towards the resistance levels at $124, $125, and $126.

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. Last week, the price closed below the demand level of $122 with hope from the traders that bearish momentum will continue this week. The bulls oppose the decrease in price. Daily bullish candles were produced that pushes the price back to retest the resistance level of $124 on September 29. The bears defend the just mentioned level and that led to the price consolidation that lasts for three days.

EURJPY Daily chart, October 02

Today, the bears gain more momentum and a big massive bearish candle formed which engulfs the previous candle. The price has tested the demand level of $122 and pulls back. The price is trading below the 9 periods EMA and 21 periods EMA which indicates a decrease in the price. Further increase in the bears’ pressure may penetrate the demand level of $122 downside which may decrease the price further to $121 and $122 demand levels. The rejection of the price at $122 price level may push the price up towards the resistance levels at $124, $125, and $126.

EURJPY medium-term Trend: Bearish

EURJPY is bearish in the medium-term outlook. The bulls defended the support level at $122 at the beginning of this week. The price reverses and increases to test the resistance level at $124. The mentioned level was tested on September 30, pulled back, and tested the same level on October 01. The price is currently declining to retest the demand level at $122.

EURJPY 4-hour chart, October 02

The two EMAs are close to each other and the price is trading below the EMAs. The relative strength index period 14 is bending down at 43 levels which connotes a sell signal.