EURJPY Price May Reverse at Support Level of $122

EURJPY Price Analysis – September 18

The price may bounce towards the $124, $125, and $126 resistance levels provided the support level of $122 holds. In case the support level of $122 does not hold the price, then, $121 and $120 support level may be tested.

EURJPY Market

Key Levels:

Supply levels: $124, $125, $126
Demand levels: $122, $121, $120

EURJPY Long-term Trend: Bearish

EURJPY market was dominated by the bulls two weeks ago and the price tested the resistance level of $126. The bullish momentum became weak and could not break up the resistance level at $26; that is why the market closes with the daily candle turned to an inverted hammer on September 10. The strong bearish candle opened the market on 14 September and the support level at $125 was penetrated towards the downside. The price falls to test the support level at $122.

The 9 periods EMA has crossed the 21 periods EMA downside and the pair has penetrated the two EMAs downside; this is an indication that the bears are in control of the EURJPY market. The price may bounce towards the $124, $125, and $126 resistance levels provided the support level of $122 holds. In case the support level of $122 does not hold the price, then, $121 and $120 support level may be tested.

EURJPY medium-term Trend: Bearish

EURJPY continues its bearish movement which it commenced last week. The bears increase their momentum and break down the support levels of $125 and $124. The price found support at $122, bounced, and retests the second time. The price may reverse at the $122 price level.

The price is trading below 9 periods EMA and 21 periods EMA and the two EMAs are separated from each other and which indicates a bearish trend. The relative strength index period 14 is at 30 levels pointing up indicating a buying signal. When the market opens, traders can place Buy Stop at $124.497, Stop Loss at $123.317, and Take Profit at $125.329.