EURJPY Price May Reverse at Significant Resistance Level $123

EURJPY Price Analysis – July 24

The price retracement may lead to bearish reversal provided the demand level of $122 does not hold and this may drop the price at the previous low at $120. In case the demand level of $122 is defended by the bulls, the bullish trend may continue and the resistance level of $124 and $125 maybe its target.

EURJPY Market

Key Levels:

Supply levels: $123, $124, $125
Demand levels: $122, $121, $120

EURJPY Long-term Trend: Bullish

The bulls dominate the EURJPY market for a long period. EURJPY is bullish on the long-term outlook. Two weeks ago, the pair was consolidating briefly within $121 and $122 price level. The way it was speculated last week; the support level of $121 holds the price and the resistance level of $122 was broken upside and the price rally towards $123 price level. Currently, at the just mentioned level, the price pulls back to retest $122 price level.

EURJPY has been trading above the two EMAs and the position is maintained but currently touching the 9-periods EMA; it shows that bullish momentum is getting weak. The price retracement may lead to bearish reversal provided the demand level of $122 does not hold and this may drop the price at the previous low at $120. In case the demand level of $122 is defended by the bulls, the bullish trend may continue and the resistance level of $124 and $125 maybe its target. The sellers may take over the market soon as the Relative Strength Index period 14 bending towards the south to indicate a sell signal.

EURJPY medium-term Trend: Bullish

EURJPY price action has formed a cup shape with a handle on the 4-hour chart; this takes place after the breakout from the consolidation the price engaged in last week. The price may commence a bearish reversal at the supply level of $123.

Price retracement is ongoing towards the demand level of $122. The price crossed 9 periods EMA and the 21periods EMA to the downside, in other words, it is trading below the EMAs. Further decrease in price envisaged.

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