EURJPY Corrects Lower Beneath 125.00 Levels As Japanese Yen Safe-Haven Status Remain

EURJPY Price Analysis – August 21

Following last week’s 2020 highs close to level 126.80, EURJPY has proceeded on a corrective downside, which is now experiencing its 5th straight session. Early in the European session on Friday, the eurozone’s single currency declined by 65 basis points or 0.40 percent against the Japanese Yen as of when writing.

Key Levels
Resistance Levels: 137.49, 128.67, 126.78
Support Levels: 124.43, 123.37, 121.96
EURJPY Long term Trend: Bullish
The daily chart of the EURJPY pair below demonstrates different cycles, which underscores the fractal nature of the price action. Further downside is therefore likely and could drag the cross as low as the 124.43 zones, or last week’s low. If the selling impetus picks up pace, then the next key contention area is located near the 122.87 level.

Despite the ongoing move, the constructive view around EURJPY is predicted to remain unchanged while above the ascending trendline support at 124.00 level. Against this, there is quite a moderate contention area in the 124.43/30 band ahead of the vicinity of the 122.87 level.
EURJPY Short term Trend: Ranging
EURJPY stays in consolidation from level 126.78 and intraday bias stays initially neutral. Over 124.43 support levels should be found below the retreat to carry another rally. On the upside, the 126.78 breach aims a 100 percent prediction of 114.42 to 124.43 levels at 129.32 levels from 119.31.

Even so, the 124.43 level break may imply short-term topping and turn bias to the downside to pull back. While in the short-term horizon the cross may enter a short moment of consolidation, further downside should not be ruled out.

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