EURJPY Price Analysis – October 18
In case the daily bullish candle close above the supply level of $120 and the retest is done, then, the price may target the supply level of $120.Should the Bears defend the supply level of $120 the price may reverse at the level.
Supply levels: $120, $122, $123
Demand levels: $119, $117, $116
EURJPY Long-term Trend: Bullish
EURJPY is bullish on the long-term outlook. The Bulls hold tight to the EURJPY market giving no chance to the bears. The demand level of $119 was broken up on October 11 with the formation of a strong bullish candle. Following the breakout was the emergence of a more bullish candle that pushed up the price towards the supply level of $120. The bullish momentum eventually placed the price at the supply level of $120 as it was predicted last week.
The pair is moving farther away from the two EMAs upside which indicates a further increase in the bulls’ momentum in the EURJPY market. The currency pair is trading above the 21 periods EMA and 50 periods EMA. In case the daily bullish candle close above the supply level of $120 and the retest is done, then, the price may target the supply level of $122. Should the Bears defend the supply level of $120 the price may reverse at the level. However, the Stochastic Oscillator period 14 is at the overbought region with the signal lines trying to bend towards the south, which connotes that the bears may come up and take over the market.
EURJPY medium-term Trend: Bullish
EURJPY is bullish on the 4-hour chart. The currency pair is moving higher after the breakouts at the former supply level of $119 now demand level. The last week’s target of supply level of $120 was reached and currently breaking out the level.
The price is trading above the two EMAs to indicate the Bulls’ momentum. The stochastic Oscillator period 14 is at 80 levels bending up to indicate a buy signal.
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