EURJPY Price Reverses at $122 Support Level, Aiming at $126 Resistance Level

EURJPY Price Analysis – October 09

There is a high probability that the price will increase to $125 price level, in which it may extend to $126 and $127 resistance level provided $125 level does not hold. The support levels to watch are $124, $122, and $123.

EURJPY Market

Key Levels:

Supply levels: $125, $126, $127
Demand levels: $124, $122, $121

EURJPY Long-term Trend: Bullish

EURJPY market plays the way we predicted last week; there was a price rejection at the demand level of $122, the price reverses and increases to break up the last week’s resistance level at $124. The price is currently aiming at a significant resistance level of $125. The price is bullish in the long-term trend.

EURJPY Daily chart, October 09

Last week, the market closes below the two dynamic support levels near the $122 price level. Today, the bulls have pushed up the price above the 9 periods EMA and 21 periods EMA. There is a high probability that the price will increase to $125 price level, in which it may extend to $126 and $127 resistance level provided $125 level does not hold. The support levels to watch are $124, $122, and $123. The relative strength index period 14 with its signal line is above 50 levels pointing up to indicate a buy signal.

EURJPY medium-term Trend: Bearish

EURJPY is bullish in the medium-term outlook. The currency pair was bearish last two weeks and the bearish momentum placed the price at the support level of $122. The bulls opposed the price decrease with the formation of bullish candles. The price increase and penetrated the $124 price level upside.

EURJPY 4-hour chart, October 09

EURJPY is trading above the 9 periods EMA and 21 periods EMA and the two EMAs are following the trend of the price. The relative strength index period 14 is bending down at 60 levels to indicate a sell signal which may be a pullback. At the opening of the market next week, traders can place a buy stop at $125.596, take profit at $126.990, and stop-loss at $125.032.