EURJPY Recovers From Lows To 128.40, Focus Shifts to ECB Meeting

EURJPY Price Analysis – December 10

The EURJPY pair recovers from lows on Friday to trade at 128.40 intraday high level. After finding buyers around the 127.81 level during the day, the pair appears to be on track to conclude the week approximately 0.17 percent higher. As attention shifts to next week’s ECB meeting, pandemic uncertainty is putting the pair under pressure.

Key Levels
Resistance Levels: 130.00, 129.50, 129.00
Support Levels: 128.00, 127.50, 127.00
EURJPY Long term Trend: Ranging
The cross is presently trading around 128.34, with the next resistance level at 128.58 and 129.00 (psychological barrier), and finally 130.00 as the next high level. On the other side, a collapse below the 127.38 level (weekly low and Dec 3) will show the 127.30 immediate support level and, finally, the major 127.00 levels.

Overall, the EURJPY daily chart’s technicals show that a daily close above 128.50 could offer momentum for a move to the register another high before the end of 2021. Although the relative strength index continues to sustain the upward trend showing further gains are still conceivable in the longer term.
EURJPY Short term Trend: Bearish
EURJPY remains in the 127.50/129.00 range on the 4-hour timeframe, with a neutral intraday bias. A breach of the 129.00 level, on the other hand, would point to a retest of the 130.00 high. In the medium term, however, the exchange rate may make a short-term pullback towards the horizontal line of support at 127.50.

A further rally within the middle price channel is expected if the 129.00 resistance level holds. Meanwhile, a violation of the 128.00 level might move the bias to the downside, signaling a more significant decline to the 127.00 support level.

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