EURJPY Price Analysis – July 10
The demand level of $120 may be penetrated and decrease to reach demand levels of $119 and $118. In case the bulls defend the demand level of $120, the bullish trend may continue and target $121, $122, and $123 price level.
Supply levels: $121, $122, $123
Demand levels: $120, $119, $118
EURJPY Long-term Trend: Bearish
EURJPY is bearish on the long-term outlook. Initially last week, the currency pair was increasing towards the supply level of $122. On July 09, the bears interrupted the upwards movement of the price. The daily bearish candle appeared at the supply level of $121 and the price is decreasing to test the $120 demand level at the moment of writing this report.
The currency pair is penetrating the two EMAs to the downside and EURJPY is trading below the 21 periods EMA and 9 periods; the latter is making an attempt to cross the former as a sign of bearish movement. Further decrease in EURJPY price is highly envisaged as the lower trend line of the ascending channel is broken with a strong daily bearish candle. The demand level of $120 may be penetrated and decrease to reach demand levels of $119 and $118. In case the bulls defend the demand level of $120, the bullish trend may continue and target $121, 4122, and 4123 price levels. The Relative Strength Index period 14 is at 50 levels with the signal lines pointing down to indicate sell signal.
EURJPY medium-term Trend: Bearish
EURJPY is bearish on the 4-hour chart. EURJPY was on the ranging mode last week on the medium term. There was a fake breakout at the supply level of $121. “Rail Road track” candle pattern formed to return the price towards the south. The price is currently approaching the demand level of $120.
The 9 periods EMA has crossed the 21periods EMA to the downside and the price is trading below the two EMAs. The lower trend line of the channel formed is already penetrated; a further decrease in price is possible. The relative strength index period 14 is below 40 levels with a signal line pointing down which connotes sell.