EURJPY Extends Sideways Trading As 126.09 Level Holds, Risk-On Market Weighs the Yen

EURJPY Price Analysis – February 5

The EURJPY pair has attempted to trade lower early during Friday’s European session but was held by the 126.09 level. The pair has remained stuck while extending its sideways trading as the risk-on market weighs the Japanese Yen. JPY was weighed on amid another day of gains for global equity and crude oil markets.

Key Levels
Resistance Levels: 127.50, 127.07, 126.50
Support Levels: 126.09, 125.50, 125.08
EURJPY Long term Trend: Ranging
EURJPY attempted trading lower today, but support at 126.09 may halt its decline. That said, now the rate is drifting in sideways trading. Overall, despite the latest consolidation, the rate remains above the aforementioned level.

A clear rebound back above 126.50 level, may signal that the recent decline was just a correction and that the bulls are back into the game. Further, as long as EURJPY is above the key moving average 5 at 126.50, it is expected to maintain positive bias unchanged.
EURJPY Short term Trend: Ranging
The intraday bias of EURJPY stays sideways for now as it continues to range from the temporary low of 125.08. A steeper fall may remain in support as long as the 126.50 near term resistance level stays, even in the event of a strong rebound.

A breach of the temporary low of 126.09 may restart the plunge from 127.07 to 61.8% retracement from 114.39 to 127.07 at 125.50, which is near to the key support level of 125.08. However, the lower border of the ascending trendline may provide support for the exchange rate in the short term.

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