EURJPY Confronts Resistance Near 133.00 As ECB Fails To Boost Euro

EURJPY Price Analysis – October 29

After rising from weekly lows in the mid-131.00s, the EURJPY surge faced its first hurdle near 133.00 at the close of the week. Nonetheless, sellers have returned to the market, dragging the pair back into negative territory. The ECB meeting on Thursday did not produce any new decisions, as predicted; but, the Euro reacted sharply to Lagarde’s lack of clarity in statements about current market pricing.

Key Levels
Resistance Levels: 134.15, 133.47, 132.91
Support Levels: 131.50, 130.75, 130.00
EURJPY Long term Trend: Ranging
The EURJPY’s daily chart shows multiple cycles, emphasizing the fractal character of the market action. As a result, further fall is probable, and the cross might drop as low as the 131.50 zones. If the selling pressure abates, the next major resistance region will be near the 122.87 level.

Given the ongoing trend, the bullish outlook for EURJPY is expected to remain constant as long as it remains above the ascending trendline support at 127.93. In contrast, there is a somewhat strong contention region in the 132.50/91 band ahead of the 133.50 level.
EURJPY Short term Trend: Ranging
EURJPY remains in consolidation from level 133.47, with an initial neutral intraday bias. Below the retreat, support levels of above 131.50 should be sought to carry another rally. On the upside, a breach of 132.91 targets a 100 percent projection of 127.93 to 130.50 levels from 128.58 levels to 133.47 levels.

Nonetheless, a break of the 131.50 level could indicate short-term topping and a tilt to the downside for a pullback. While the cross may enter a brief period of stability in the immediate term, the additional decline should not be ruled out.

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