EURJPY Price Analysis – January 03
Further increase in the Bears’ pressure may push the price to the low demand level of $119 and the level may be broken downside. In case the demand level of $119 holds, the price may bounce.
Supply levels: $120, $122, 123
Demand levels: $119, $117, $116
EURJPY Long-term Trend: Bearish
On the long-term outlook, EURJPY is bearish. There was a fake bullish breakout at the supply level of $122 on 27 December; the buyers were aiming at the supply level of $123 before the sellers opposed the increase in price. The pressure from the bears is high and the price dropped to the former demand level of $120. On January 03, a strong bearish daily candle emerged and broke down the former demand level of $120. The price exposed to the demand level of $119.
EURJPY has penetrated the two EMAs downside and currently trading below the 21 periods EMA and 50 periods EMA, which indicates that sellers are dominating the EURJPY market. Further increase in the Bears’ pressure may push the price to the low demand level of $119 and the level may be broken downside. In case the demand level of $119 holds, the price may bounce. The Relative Strength Index period 14 is at 40 levels with the signal lines pointing down to indicate a strong sell signal.
EURJPY medium-term Trend: Bearish
EURJPY is bearish on the 4-hour chart. Two weeks ago, the Bulls dominated the EURJPY market and the bullish momentum placed the price above the $122 price level. The price reversed at the pressure of the Bears and declined towards the demand level of $119 after it broke down the $120 price level.
The 21 periods EMA has crossed the 50 periods EMA and the price is trading below the two EMA at a distance which indicates an increase in the Bears’ momentum. The relative strength period 14 is at 20 levels and the signal line pointing up to indicate a buy signal which may be a pullback.
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