The EUR/JPY market looks very unstable, and price action seems unpredictable at the moment. It’s almost like one is treading on thin ice. Even technical indicators are reflecting the choppy nature of this market. However, let’s further examine this market to gain better insight into it.
Major Price Levels:
Top Levels: 141.16, 142.00, 143.00
Floor Levels: 141.00, 139.00, 138.00
Price Action in the EUR/JPY Market Crawls Towards the Fibonacci Level 50
On the EUR/JPY 24-hour market, and during the past three trading sessions, a green price candlestick tested the Fibonacci support level 50. However, price action was able to derive a moderate upward thrust during that session. In subsequent sessions till now, price action has continued to crawl towards the same support. In the ongoing session, the pair’s price has inched closer to this support level in what seems like an attempt to retest this level. The RSI indicator has been quick to give a bearish crossover shortly after it gave a bullish one. Consequently, this portrays how choppy the price action has been. Furthermore, the MACD indicator keeps showing that price action is more likely to trend downward. This inference is drawn from the bars of the MACD indicator, as they are now pale green, and reducing in height. Traders may have to brace themselves as prices may break the support at 140.61.
EUR/JPY Bears Are Dishing Out Some Heavy and Quick Blows
On the EUR/JPY 4-hour market, price action shows some serious instability. For three consecutive sessions, downward forces have remained dominant. This has caused the price action to stay under the middle limit of the Bollinger Bands indicator. Technical indicators, as well, continue to reveal the unstable nature of this market. Here the RSI indicator lines appear mangled all the way from level 10 of the indicator to around level 50, where these lines took a definite turn to the downside. Consequently, this indicates that the downside momentum is on the rise. Likewise, the MACD lines continue to move down toward the equilibrium level of 0.00. Therefore, traders can anticipate that prices will generally move downward, despite the market’s choppy character, towards the 139.00 mark.
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