EURJPY Stabilizes Beneath 129.00 Following Surging Eurozone Inflation

EURJPY Price Analysis – October 2

At the close of the week, EURJPY found its near-term base at 128.54 and traded just below the 129.00 level. Meanwhile, after fall from a top point at 130.47 level, the pair is stabilizing. After depreciating by 1.35 percent in the previous two days, the common currency was unable to make a meaningful rebound on Friday. The inflation in the Eurozone is surging, putting downward pressure on the EUR.

Key Levels
Resistance Levels: 130.50, 130.00, 129.50
Support Levels: 128.00, 127.50, 127.00
EURJPY Long term Trend: Ranging
Meanwhile, the EURJPY pair’s ranging trend continues, as the pair is currently trading at 128.74, beneath the moving averages 5 and 13. If sellers keep moving south, September lows around 127.93 might come under pressure, putting 127.50 lows in jeopardy (February 22).

As long as the 127.93 support level is sustained, more gains are predicted. At the next 129.50 levels, a break of 130.00 would seek recovery from 127.93 (low) to 131.00. A break lower of the 128.50 level, on the other hand, would indicate that the rebound from 127.93 is over and that the focus has shifted back to this low.
EURJPY Short term Trend: Ranging
The EURJPY intraday bias is negative as the consolidation from 130.47 continues. The price is expected to continue ranging until minor support level 128.00 is reached. Three cycles down to the level of 128.00 might have ended the correction from the level of 131.00.

The 129.50 upper level should be retested if the minor resistance zone at 129.13 is breached. A violation of the minor support level at 128.29, on the other hand, would extend the correction with another drop to 127.50.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results