EURJPY Bears Overpower Bulls at 127.50 Level As Yen Stays on the Defensive

EURJPY Price Analysis – January 8

The EURJPY cross trades on the defensive after sellers overpowered buyers at 127.50 level. Everything being equal, the EURJPY exchange rate could continue to range during the following trading session.

Key Levels
Resistance Levels: 128.67, 127.50, 127.07
Support Levels: 126.00, 125.00, 123.90
EURJPY Long-term Trend: Bullish
The exchange rate fell from 127.50 barriers and bearish traders may likely continue to push the EURJPY down during the next trading session. However, the 126.09 support level could support the exchange rate in the medium term. A further advance is expected as long as the support level at 119.31 remains unchanged.

A rebound past 127.07 could target a 61.8% recovery from 137.49 (high) to 114.39 at 127.50. Further trading beyond this level could target the next level of 137.49. However, a solid breakout of 119.31 could provide confidence that the rally from 114.39 has ended and brought attention back to that low.
EURJPY Short-term Trend: Ranging
EURJPY is still in the range of 127.50, and initially, intraday bias remains neutral. Another rise is expected as the resistance at 125.00 remains support. On the other hand, a decisive bullish return past 127.07 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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