EUR/JPY price experienced a significant headwind from the middle of December 2022 until around January 2, 2023. However, from the 2nd of January until now, it appears as if a wind of change visited the pair, and this pushed the price back above the 140.00 level. Nevertheless, at this point, it appears as if the pair’s upside price momentum is running out.
Major Price Levels:
Top Levels: 142.20, 143.50, 144.80
Floor Levels: 142.00, 141.50, 140.00
EUR/JPY Is Facing Headwind as It Approaches the 142.30 Resistance Level
On the EUR/JPY daily market, it appears that price action is facing headwinds as it approaches the 142.30 mark. The lines of the RSI can be seen up in the overbought region; however, the leading line happened to have reached the peak level, while the lagging one is at the 84 levels. Likewise, the MACD indicator has just recently given an upside crossover to indicate a gain in upside momentum. Also, price action remains significantly above the 9-day MA line. However, the shrinking size of price candles appears to indicate that the bulls are losing strength. Therefore, it may be profitable for traders to consider the reduced size of subsequent price candles, as this could be indicating that the bulls may be losing upside momentum.
Signs of Momentum Exhaustion in the EUR/JPY Market
Small-bodied Price candles continue to push prices in the EUR/JPY upwards inch by inch. Even at that, technical indicators are now showing signs that the price increase may soon reverse. The lines of the Stochastic RSI indicator are touching each other at the tip, in what seems like a bearish crossover attempt. Also, this is happening when the lines of this indicator have reached the overbought zone. The lines of the MACD are now closer to each other but still moving slightly upwards. Additionally, the histogram bars of the MACD are now pale green and equal in height. As a result, this indicates that the upward momentum is fading. Therefore, traders in the EUR/JPY market can predict that prices may at most attain the 143.00 price mark.
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