Following the October 17 rate cut by the ECB, the EURJPY has continued to edge higher. The upward retracement has persisted even amid noticeable price contractions. However, some ECB officials are now eyeing a potential postponement of the November rate cut, yet the shared currency remains poised for further traction as we head into the new month.
Key Price Levels:
Resistance Levels: 166.00, 168.00, 170.00
Support Levels: 165.00, 163.00, 161.00
EURJPY Price Action Positions for More Thrust
Price activity in the EURJPY market has risen past the Moving Average (MA) curve on the pair’s daily chart. Notably, the 20 and 50-day MA lines have already delivered a bullish crossover below the current price action. Additionally, the 100 and 200-day EMA lines have converged, indicating a crossover below price activity. Observing the last two price candles on this chart, we see that price forces appear to be at a standoff, resulting in a spinning top candle.
Meanwhile, the Stochastic Relative Strength Index (Stochastic RSI) lines continue to rise after recently aborting a bearish crossover just above the 80 mark. With price action clearly above the MA lines, traders can maintain their bullish stance on this market.
EURJPY Sticks to Minimal Gains at High Altitude
The EURJPY market on the 4-hour price chart maintains consistency with upward momentum, indicating that bullish forces are still active. This trend is apparent as price candles remain above all the MA lines, mirroring the daily chart. Meanwhile, the Stochastic RSI lines are positioned below the 40 mark, where the indicator has recently achieved an upward crossover.
The latest price candle appears green and resembles a hammer candle, signaling potential support. Although the MA lines are not crossing each other at this level, they remain below price activity, while the Stochastic RSI indicator lines suggest the market’s direction. Therefore, traders may anticipate that price action could soon breach the 166.00 level and approach the 166.50 mark for additional short-term gains.
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