EURJPY Deepens Losses to the Vicinity of Mid 128.00 Level As Japanese Data Bolster Yen

EURJPY Price Analysis – February 26

EURJPY remains beneath recent high and approaches the mid 128.00 level. The pair traded at daily highs around 129.52 before grinding lower to 128.64 level. The Japanese Yen is strong against a basket of currencies after the release of the latest inflation data from the BoJ.

Key Levels
Resistance Levels: 133.12, 132.03, 130.14
Support Levels: 128.45, 127.50, 126.72
EURJPY Long term Trend: Ranging
At the moment the cross is losing 0.34% at 128.90 and faces the next support at 128.45 level followed by 127.50 (psychological level) and then 126.72 medium-low level. On the other hand, a bounce ahead of 129.97 (weekly high Feb.25) would aim for a fresh high past the 130.14 handles.

Looking at the broader picture, while above the moving average 5 at 128.50 level the outlook for the cross should remain constructive. The Relative Strength Index has made a bearish divergence pattern while the price is slightly below the horizontal barrier at 130.14. The pair may continue falling as bears target the next support at the $128.45 level.
EURJPY Short term Trend: Ranging
The intraday bias in EURJPY is altered slightly bearish at the upside channel with the present retreat. Meanwhile, some consolidations could be seen beneath the 129.97 temporary high. But further range trading is anticipated for as long as 127.50 resistance turned support level holds intact.

On the upside, above 129.97 level may restart the bullish trend from 121.63 to 126.10 to 127.50 from 125.07 at 130.14 next level. EURJPY has also moved below the moving average of 5 and 13 while the 4 hour RSI hovers around its neutral line. The pair may resume the downward trend to 127.50 level.

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