EURJPY Plunges to Fresh 3-Day Lows Near the 123.00 Mark

EURJPY Price Analysis – October 2

EURJPY’s significant progress seems to have encountered a hard obstacle in the 124.20/30 band at the 3-month resistance line. The continuing corrective downside carries the ability to further widen and re-visit the 122.00 region’s September lows.

Key Levels
Resistance Levels: 127.07, 125.58, 124.24
Support Levels: 122.75, 119.31, 117.08
EURJPY Long term Trend: Ranging
As observed on a daily, beneath moving average 5 and 13 under the horizontal support at 122.00 level, the extension of this downtrend may be revisited. The analysis on the cross is anticipated to stay positive beyond this level. In the broader sense, the increase from the 114.39 level within a long-term sideways trend is seen as a medium-term growing phase.

As long as the 119.31 support level remains, a further rise is expected. The 127.07 level break would target 61.8 percent of the 137.49 (high) level retracement to 114.39 at the next 128.67 levels. Even then, the steady breach of 119.31 level may suggest that the growth has been completed from 114.39 level and shift the emphasis back to this low.
EURJPY Short term Trend: Ranging
Initially, intraday bias holds a firm in EURJPY. With the resistance level of 124.24 intact, further decline remains favorable. On the downside, the sustained break from 114.39 to 127.07 at 122.24 levels of 38.2 percent retracement would extend the decrease from 127.07 level to 61.8 percent retracement at 119.25 level, which is close to 119.31 main support level.

However, on the upside, a firm break of level 124.43 would claim that the pullback from level 127.07 has been completed. To retest this height, intraday bias will be switched back to the upside. With short-term support coming in at level 122.75 and the next mid-term support level coming in at level 120.27, we could potentially see more unwinding.

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