EURJPY Stays Under Pressure Well Beneath the 124.00 Level

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Azeez Mustapha

Updated: 13 October 2022

EURJPY Price Analysis – September 18

The persistent buying interest in the Japanese safe-haven continues to put EURJPY under pressure and forces it to extend the plunge to the 123.43 regions on Friday, or fresh 2-month lows. The recovery in the greenback following Wednesday’s FOMC event has been weighing on the sentiment surrounding the risk complex.

Key Levels
Resistance Levels: 127.07, 126.78, 124.43
Support Levels: 123.37, 121.47, 119.31
EURJPY Long term Trend: Ranging
At the moment the cross is losing 0.23% at 123.83 level and a drop below 123.37 (low level of Sep.18) would aim for a 122.87 low level and finally 122.00 marks. On the upside, the next up barrier is located at 125.58 high level followed by 127.07 (2020 high Sep.1) level.

Following a brief test of the 124.43 regions, the selling bias resurfaced in EURJPY in response to the strong sentiment favoring the Japanese yen. The cross not only broke below the 124.00 marks soon afterward, but it also recorded fresh multi-week lows in the vicinity of 123.43 level.
EURJPY Short term Trend: Bearish
EURJPY recovers after hitting the 123.43 level and intraday bias are turned bearish first. A further fall is expected as long as 125.00 near term resistance level holds. The fall from 127.07 level is correcting the rise from 114.42 level.

The break of 123.37 level will target a 38.2% retracement of 114.42 to 127.07 at 122.87 levels and also the risk will now stay on the downside as long as the 127.07 resistance level holds, even in case of a strong recovery.

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