EURJPY recently peaked around the 163.00 price level in previous sessions, triggering a corrective phase before price action stabilized near the 155.00 threshold. Notably, the pair has experienced substantial gains in today’s trading session, prompting a closer examination of the market dynamics.
Key Price Levels:
Resistance Levels: 157.82, 158.00, and 159.00
Support Levels: 157.00, 156.00, and 155.00
EURJPY Bulls Face Challenges
In the daily EURJPY market, bears have maintained control since the onset of the downward correction towards the end of last month. The market began stabilizing last week as buyers re-entered gradually, bringing stability to the price action within the range of 155.00 and 157.00.
Today’s trading activities have propelled the pair beyond the 157.00 price mark. However, the upper shadow on the corresponding price candle suggests some rejection, possibly due to traders reaching their targets or facing economic headwinds. Despite this, the Stochastic Relative Strength Index indicates the potential for continued upward movement in price action.
EURJPY Retreats Below the 158.00 Price Mark
The nature of the observed downward correction in the daily EURJPY market is more evident in the 4-hour chart. Here, price action breached the upper limit of the Bollinger Bands indicator, reflecting a natural response to the spontaneous price surge.
As price action retreats below the upper limit of the Bollinger Bands, the momentum from the rebound appears to wane, as indicated by the last price candle on the chart. This suggests that the 156.00 price level may serve as a robust support, likely leading to another upward rebound. The bearish crossover in the Stochastic RSI seems relatively flat at this point, indicating weakened downward forces. Traders can anticipate a bounce off the support at the 156.00 mark.
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