EURJPY Price Analysis – January 31
The breakout is imminent; the breakup at the demand level of $119 may decrease the price to the low of $118 price level. On the other hand, the penetration of the supply level of $120 will push up the price to $121.
Supply levels: $120, $122, 123
Demand levels: $119, $118, $117
EURJPY Long-term Trend: Bearish
EURJPY is bearish on the long-term outlook. The Bears have been in control of the EURJPY market for more than two weeks. The bearish momentum placed the pair at the demand level of $119 after it penetrated the $120 price level. EURJPY price started consolidating at the demand level of $119. There was no significant movement in the EURJPY market last week.
EURJPY retains its trading below the 50 periods EMA and 21 periods EMA, the later EMA is making attempt to cross the later which indicates that the Bears are in control of the EURJPY market. The breakout is imminent; the breakup at the demand level of $119 may decrease the price to the low of $118 price level. On the other hand, the penetration of the supply level of $120 will push up the price to $121. The Relative Strength Index period 14 is at 40 levels with the signal lines pointing up to indicate a buy signal.
EURJPY medium-term Trend: Ranging
EURJPY is ranging on the 4-hour chart. The bears lose their pressure after the breakdown of the $120 price level. The demand level of $119 acts as a barrier to the Bears, likewise, the supply level of $120 holds the price and the Bulls could not push up the price and that led to the ranging movement within the just mentioned levels.
The 21 periods EMA is having direct contact with the price while the 50 periods EMA is above the price; which indicates that consolidation is ongoing in the EURJPY market.
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