EURJPY Price Analysis – May 24
The breakout of the currency pair at the $121 level will expose the $119 level and it may be its target. The Bulls may increase the momentum and break out at the supply level of $123 and the price may reach $125 level.
Supply levels: $123, $125, $127
Demand levels: $121, $119, $117
EURJPY Long-term trend: Bearish
EURJPY is still bearish on the long-term outlook. The Bearish momentum was weak after the coin penetrated the former demand level of $123; this is clearly seen on the daily chart as the price is consolidating below the $123 demand level. On May 21, the Bulls tried to push the price up to break up the $123 level but the confluence at the mark opposed the move. Yesterday, another strong bearish daily candle emerged pushing the price towards $121 level.
EURJPY pair remains where it was last week under the 21 period EMA and 50 periods EMA and the two EMAs are well separated from each other as a sign of bearish movement. The Relative Strength Index period 14 is below 40 levels with the signal lines bending down to indicate sell signal. The breakout of the currency pair at the $121 level will expose the $119 level and it may be its target. The Bulls may increase the momentum and break out at the supply level of $123 and the price may reach $125 level.
EURJPY Short-term Trend: Bearish
On the 4-hour chart, EURJPY is on the bearish trend. Though EURJPY is bearish, however, the momentum of both the Bulls and the Bears are getting weaker under the dynamic support and resistance of 21 and 50 EMAs. Thus, consolidation is ongoing in the market of EURJPY.
The currency pair is still trading below the 21 periods EMA and 50 periods EMA. The Relative Strength Index period 14 is at 40 levels with the signal lines pointing down to indicate a sell signal.
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