EURJPY Price Analysis – August 03
The market closed with a strong bearish candle at the demand level of $118. The bearish trend may continue as long as the Bears have enough momentum to penetrate the demand level of $118 downside. In case the just mentioned level holds, the price may bounce and reverse.
Supply levels: $119, $120, $123
Demand levels: $118, $117, $116
EURJPY Long-term trend: Bearish
EURJPY is bearish on the long-term outlook. The currency pair is under strong bearish pressure. Last week was another party time for the Bears; after a brief pullback that took place on July 25, the Bears waved into the EURJPY market with full force. This is seen on the daily chart as the three massive bearish candles emerged that broke down the former demand levels of $120 and $119. The price reached a low of $118 before the market closed last week.
The market closed with a strong bearish candle at the demand level of $118. The bearish trend may continue as long as the Bears have enough momentum to penetrate the demand level of $118 downside. In case the just mentioned level holds, the price may bounce and reverse. Meanwhile, the Stochastic Oscillator period 14 is at 25 levels with the signal lines bending down which indicate strong sell signal and a further decrease in price.
EURJPY medium-term Trend: Bearish
On the 4-hour chart, EURJPY is bearish. On the medium term, the price was bullish in the upper week. Later, the price was consolidating at the $120 price level. On July 31, there was a bearish breakout at the former demand level of $120. The price declined towards the demand level of $119 with strong bearish candles. The demand level of $119 could not hold the price, it was penetrated and the price found support at $118 price level.
However, the stochastic Oscillator period 14 is below 20 levels (oversold level) bending down which connotes sell.
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