EUR/JPY price action crashed through the 50 and 61.80 Fibonacci support levels exactly seven trading sessions ago. This downward price retracement started when the pair’s price poked through the 146 mark to test the 147-price level. However, the price’s downward retracement was abated at the 78.60 Fibonacci level. At this point, price movement in this market seems to have retraced from a higher mark.
Major Price Levels:
Top Levels: 142.12, 144.00, and 145.00
Floor Levels: 141.00, 140.00, and 139.00
The EUR/JPY Price Is Eyeing the 143.00 Price Level
The EUR/JPY price movements seem to have triggered some long orders as it tested the 140.37 mark. The last price candle on this daily chart is now testing the 142.69 price resistance level. Although this may be seen as a retracement, signs on the RSI and the MACD appear to synchronize with each other. The lines of the RSI are rising smoothly upwards from deep in the overbought zone. Also, the display on the MACD indicator points out that bears are growing weak. The MACD indicator bars have turned pale red, and the lines are now moving toward each other. The histogram bars on the MACD are growing shorter, which indicates that sellers are losing momentum. Consequently, this is pointing out that price action is likely to gain more upside traction.
EUR/JPY Price Movements Seem to Be Defying Headwind
Price movements in the EUR/JPY 4-hour market appear to be defying downward forces. On this chart, it could be noticed that dashed price candles have been appearing in previous sessions. However, the last price candle here is a bearish one, yet it rose past the 21-day EMA line. Likewise, the MACD and RSI curves are still rising higher despite the appearance of the last bearish price candle. The Stochastic RSI indicator curves have risen significantly into the overbought region. Furthermore, the MACD curves are rising towards the 0.00 level of the indicator. Also, green histogram bars can now be seen growing taller above the 0.00 level to indicate increasing upside momentum. Summing up all market signs, traders can expect the price to recover the $145.00 mark.
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