Anticipated Decline on EURJPY Towards Sub-126.00 Levels Ahead of Key US Data

EURJPY Price Analysis – September 4

The selling bias in the European currency imposes a limit on EURJPY and, on Friday, may pull it further south of the 126.00 marks ahead of Key US data. EURJPY is stepping up withdrawal from the new 2020 highs just beyond the level of 127.00 reported earlier in the week.

Key Levels
Resistance Levels: 127.50, 127.07, 126.78
Support Levels: 124.43, 123.37, 121.96
EURJPY Long term Trend: Bullish
At the present, the cross is withdrawing 0.08 percent at level 125.84, and a decline beneath level 124.43 (low) may reveal level 123.37 (low) and finally level 122.87. The next up limit, on the other hand, is positioned at 127.07 (2020 high Sep.1) led by level 127.50 and finally 129.25 (high).

There might be persistent shifts in setting the stage for 137.49 (high in 2018). For – which moving average 13 (now at 125.58 level) holds, this might appear to be the best scenario. Even so, at a later point, continuous breach of MA 13 may restore bearishness in the medium to long term for another low beneath the 114.39 marks.
EURJPY Short term Trend: Ranging
EURJPY remains in consolidation from level 127.07 and intraday bias appears initially neutral. As long as the 124.44 support level holds, additional growth is still anticipated. The 127.07 breaches are set to aim at level 128.67. After all, for broader reversal, a steady breach of 124.43 level may validate short-term topping and transform bias to the downside.

This results in another potential bearish reversal on the bullish overall trend. The present downside should only be considered corrective and holds the potential to revisit the 124.43 regions.

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