EURJPY Price Analysis – September 07
The last week market closed with the daily bearish candle above the $117 price level, in case the level holds and the Bears were not able to penetrate downside, then, the bullish movement may continue and test the $120 price level.
Supply levels: $119, $120, $123
Demand levels: $117, $116, $114
EURJPY Long-term Trend: Bullish
On the long-term outlook, EURJPY is Bullish. Two weeks ago the currency pair was consolidating around the supply level of $117. The Bears exerted more pressure on the market with the production of the strong bearish candle and this pushed down the price to reach the demand level of $116. On September 03, a bullish reversal candle pattern was formed called Morning star: this triggered the bullish momentum and the price was increased and broke up the former supply level of $117. The price pulled back to retest the broken level.
EURJPY broke up the 21 periods EMA moving towards the 50 periods EMA which indicate that the Bulls are taking over the market gradually. The last week market closed with the daily bearish candle above the $117 price level, in case the level holds and the Bears were not able to penetrate downside, then, the bullish movement may continue and test the $120 price level. Should the demand level of $ 117 is not able to hold the price, the price may decline and retest the previous low of $116 price level. Meanwhile, the Stochastic Oscillator period 14 is at 50 levels with the signal lines pointing up to indicate a buy signal.
EURJPY medium-term Trend: Bullish
EURJPY is bullish on the 4-hour chart. The Bearish momentum dropped the price at the demand level of $116 and the candle pattern formed called “cord of wood”. Following this scenario is the formation of bullish candles that made the price increased to break up the $117 price level.
The pair is trading above the 21 periods EMA and 50 periods EMA. The former has crossed the later as a sign of bullish momentum. The stochastic Oscillator period 14 is at 75 levels bending down to indicate a sell signal which may be a pullback.
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