The EURJPY market has been forming lower lows since September 30th. One of these lows was a support level of 163.50, and the latest low was around 162.60. This downward trend is supported by improved PPI and inflation figures in Europe, coupled with declining manufacturing PMI and household spending in Japan. Let’s delve into the technical analysis of the pair’s price action for more insights.
Key Price Levels:
Resistance Levels: 165.00, 167.00, 168.00
Support Levels: 164.00, 162.00, 160.00
Upside Forces Stay Ahead in the EURJPY Market
Favorable fundamentals in Europe have provided bulls with moderate upward momentum. This has kept the EURJPY market above the 163.50 threshold level. Price action in this market is currently above the 50-day and 100-day Moving Average (MA) lines. The mentioned indicator lines seem to be approaching a crossover below the recent price candle.
Nevertheless, the 20-day and 200-day MA lines are above the price action, posing some resistance to upside progress. Meanwhile, the Stochastic Relative Strength Index (RSI) lines are still rising from the oversold region, despite their somewhat jerky movement. Consequently, this technically aligns with the expectation that the market may continue its upward trend.
EURJPY Market Maintains an Upward Trajectory Despite Overbought Conditions
The EURJPY market has maintained an upward trajectory, even in the 4-hour timeframe. Recently, price candles have been forming with smaller bodies, indicating a cautious market mood. This may be due to the fact that the Stochastic RSI lines are already in the overbought region, signaling overbought conditions.
The lead line of the indicator is still dragging sideways at the 100 level, while the lagging line continues to approach. Nevertheless, the market remains above the 164.00 mark. Moreover, the 50-day and 200-day MA lines have delivered a bullish crossover below the price action, suggesting that upward forces may gain more momentum. Combining this with the favorable fundamentals, it seems that the market may target the 164.50 and 165.00 price levels.
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