EURJPY Bears Extend Fall Beneath 126.00 Level Ending the Week in a Negative Zone

EURJPY Price Analysis  – January 15

The common European currency has declined versus the Japanese Yen for 6 days in a row at the same time to sub 126.00 level while exiting the week in a negative zone. The currency pair is exchanging under the moving average of 5 and 13. The upside potential against the JPY could be limited due to a combination of factors such as ECB fiscal policy.

Key Levels
Resistance Levels: 127.50, 127.07, 126.09
Support Levels: 125.00, 123.90, 121.61
EURJPY Long term Trend: Ranging
EURJPY initially opened higher on Friday at 126.14 and traded to 126.19. The pair pulled back, bears appeared as traders turned their attention to levels below 126.00. To begin exploring the bearish scenario, it is necessary to establish a decisive fall below 125.00. The pair may continue to decline with a potential target for bearish traders around the sub 125.00 level.

In a broader context, growth from 114.39 is seen as a mid-term phase of growth within a long-term consolidation trend. Further gains are anticipated as long as the 119.31 support level is held. However, a solid breakout of 119.31 would prove that the rally from 114.39 has ended and has brought this low back into focus.
EURJPY Short term Trend: Ranging
EURJPY is still in a range from 127.50 high, and initially, intraday bias remains tilted to the downside. Another rise is expected if the resistance at 125.00 stays as support. On the other hand, a decisive rebound past 126.00 will resume full gains from 114.42.

The next target will be the mid-term level of 128.67. On the other hand, a break of revised support at 125.00 could reverse the downtrend to widen the range from 127.07 with another phase of decline.

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