EURJPY Weakness Extends Beneath 122.00 Level on Negative Market Sentiment

EURJPY Price Analysis – October 30

The selling momentum in EURJPY stays intact as its weakness extends beneath the 122.00 level at the end of the week earlier on Friday. Downside risks have continued to dominate the Eurozone currency against the Japanese Yen on negative market sentiment due to the continuous wave of Covid-19.

Key levels
Resistance Levels: 127.07, 125.00, 123.37,
Support Levels: 121.47, 119.31, 117.08
EURJPY Long-term Trend: Ranging
EURJPY has broken through several key support cluster levels compared to the previous session. After the breakdown of the support level 122.37, the psychological level of 122.00 was broken. Looking at the broader scenario, while below the ascending trendline support, the trend for EURJPY is anticipated to stay positive.

In a broader context, the rebound from 114.39 is seen as a medium to long-term growth phase within a long-term sideways trend. Further growth is expected while the support level of 119.31 is held. A break of 127.07 will target a 61.8% recovery from 137.49 (high) to 114.39 at 128.67. However, a solid breakout of the 119.31 level would be evidence that the rally from 114.39 has ended and has returned attention to this low.
EURJPY Short-term Trend: Bearish
The intraday bias of EURJPY remains negative for now. The current decline from 127.07 should now target a 61.8% recovery from 114.39 to 127.07 at 119.25, close to the key support zone at 119.31. Technical indicators suggest selling signals on the 4 hour time frame most likely could continue to pressure the exchange rate lower within this session.

Looking for strong support there to contain the downward pressure to trigger a rebound. However, a break of the minor resistance level of 122.37 is needed to mark a short-term bottom first. Otherwise, the trend may stay bearish in the event of a recovery.

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