EURJPY Price Analysis – January 22
When the bulls increase their momentum, the $126 resistance level may be penetrated, and this may push the price to $128 and $131 price level. In case the resistance level of $126 holds, the price may reverse and descend to the previous low of $124 and $122 provided the support level of $125 does not hold.
EURJPY Market
Key Levels:
Supply levels: $126, $128, $131
Demand levels: $125, $126, $124
EURJPY Long-term Trend: Bullish
The Bears pushed down the price to found support at $125 on January 18. The bears’ momentum could not break down the level due to weak momentum. The bullish engulfing candle emerges and pushed up the price to test the dynamic resistance level. Price increase was prevented by the bears at the mentioned level. The dynamic resistance level has been a barrier to the bulls. Today, the Bulls break up the barrier and increasing towards the $126 level.
The 9 periods EMA is trying to cross the 21 periods EMA upside as the price is already trading above the two EMAs which indicates that the bulls’ momentum is increasing in the EURJPY market. When the bulls increase their momentum, the $126 resistance level may be penetrated, and this may push the price to $128 and $131 price level. In case the resistance level of $126 holds, the price may reverse and descend to the previous low of $124 and $122 provided the support level of $125 does not hold.
EURJPY medium-term Trend: Bullish
GBPUSD is bullish in the medium chart. The price action has formed a “double bottom” chart pattern on 4 hour chart. The chart pattern formed is a bullish sign. When the price touches the support level of$125 twice, the level holds the price at the first and second attempts and the price bounces towards the resistance level of $126.
There is a tendency for the price to continue increasing as the price is trading above the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is pointing up above 60 levels which indicate a buy signal.
