EURJPY Bears Move in Rapidly as Market Sentiment Weigh On

EURJPY Price Analysis – January 3

EURJPY is currently trading on the level at 120.56, its lowest level since December 11, and is at risk of falling to the key top of the trend line near the 119.99 level. The breakdown shows that the rally from the September low of 115.83 level ended, and sellers regained control.

Key Levels
Resistance Levels: 124.31, 123.37, 122.65
Support Level: 119.99, 117.08, 115.83

EURJPY Long term Trend: Ranging

Since yesterday’s trading session, the single European currency depreciated by 1.12% against the Japanese yen. The breakthrough occurred across the lower border of the horizontal support pattern on the level at 121.47 on Thursday.

Given that a breakthrough has occurred, the EURJPY exchange rate is likely to continue to decline during this session. The pair can aim to the support on the trend line at 119.99 level.

EURJPY Short term Trend: Bearish

As EURJPY plummets, it holds above support level 119.99. The price activity from the level of 122.65 is considered as a consolidation model, and the intraday bias stays bearish. On the other hand, a break of the level at 122.65 can continue to move from the level at 115.83 to the critical horizontal resistance (now at 124.31).

Nevertheless, a steady breakthrough of the support level of 119.99 may suggest that the progress from the level at 115.83 is complete. The intraday bias can be reversed down to retest the level with the support of 119.24 in the first place.

Instrument: EURJPY
Order: Sell
Entry price: 121.47
Stop: 122.65
Target: 119.24

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