Bullish momentum in the EURJPY market seems to have slowed significantly after the price action crossed the 162.00 level. This appears to be the aftermath of a sharp decline in Asian stocks, combined with a hint from ECB policymaker Peter Kazimir. Let’s try to pick up cues about possible market direction below.
Key Price Levels:
Resistance Levels: 165.00, 170.00, 175.00
Support Levels: 160.00, 155.00, 150.00
EURJPY Hovers at Elevated Levels
EURJPY’s Price movement quickly rose through multiple levels, assisted by heightened volatility after the market fell to support near the 155.00 threshold. Currently, price action hovers just above the 162.00 level, close to the upper limit of the Bollinger Bands (BB) indicator.
This implies that despite lower volatility, price action is sustained above the middle limit of the BB indicator. Additionally, the Stochastic Relative Strength Index (Stochastic RSI) lines are above the 80 mark. However, the indicator has delivered a downward crossover. If the fundamentals surrounding the EUR do not worsen, upward forces may catch up with the market shortly.
EURJPY Keeps a Promising Stand
In the EURJPY 4-hour market, price action seems to be settling on the middle band of the BB indicator. Volatility appears consistent, as indicated by the price of candles. Despite this, the BB indicator is slightly tilted upwards, while the upper and lower bands have contracted slightly.
Meanwhile, the Stochastic RSI lines are moving sideways at the 20 level, suggesting that the market direction is undecided. However, traders may wait for general upward correction to develop some momentum until it hits the 162.90 mark, signaling a potential approach toward the 164.00 level. .
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