EURJPY Price Penetrates $122 Level, Previous Low of $120 May Be Reached

EURJPY Price Analysis – September 25

The market closed with a daily bearish candle implies that the downtrend may continue in the EURJPY market. The target may be the support level at $121 and if it does not hold, a $120 support level may be reached. Looking at the upper side of the market, the resistance level can be found at $122, $124, and $125.

EURJPY Market

Key Levels:

Supply levels: $122, $124, $125
Demand levels: $121, $120, $118

 

EURJPY Long-term Trend: Bearish

The bears hold tightly to the EURJPY market without giving a chance for the bulls to pullback the price. Last week, the support level of $122 could not hold the price. The bears’ pressure breaks down the mentioned level and the support level of $121 is exposed. EURJPY consolidates for two days below the $122 level. On 25 September, the bears further pushed down the price towards the support level of $121.

EURJPY Daily chart, September 26

The price is moving farther away from the two EMAs which indicate an increase in the bearish momentum; also, EURJPY is trading below the 9 periods EMA and 21 periods EMA. The market closed with a daily bearish candle implies that the downtrend may continue in the EURJPY market. The target may be the support level at $121 and if it does not hold, the $120 support level may be reached. Looking at the upper side of the market, the resistance level can be found at $122, $124, and $125.

EURJPY medium-term Trend: Bearish

EURJPY is bearish in the medium-term outlook. The bears exerted more pressure and the former support level of $124 was penetrated. The support level of $122 was reached but it seems the bears’ pressure is becoming weaker at the support level at $122. The price is consolidating at the just mentioned level.

EURJPY 4-hour chart, September 26

The two EMAs are close to each other and the price is trading around and over the 9 periods EMA and 21 periods EMA. Nevertheless, the price closed below the two EMAs as an indication that price may reduce further. The relative strength index period 14 is at 40 levels pointing down indicating a selling signal. When the market opens, traders can place Sell Stop at $122.550, Stop Loss at $123.643, and Take Profit at $121.649.