EURJPY Strives To Find a Path After It Reaches 128.00

EURJPY Price Analysis – August 20

On Friday, the EURJPY continued much under attack at current levels within the 128.00 area. A further decline might take the price down to the 127.00 level. In terms of policy, the gap between the Federal Reserve and the European Central Bank (ECB) is anticipated to increase in the coming year, making the EUR vulnerable.

Key Levels
Resistance Levels: 130.50, 129.61, 128.58
Support Levels: 127.50, 126.72, 126.10
EURJPY Long term Trend: Ranging
Recent lows below 128.00, as seen on the daily chart, may contain possible bearish moves, while the 128.00 level is now holding the upside. Furthermore, EURJPY is projected to keep its downward bias as long as it remains below the major moving average 5 at 128.30.

Likewise, the EURJPY pair’s negative trend continues, as the pair is currently trading at 128.28, beneath the moving averages 5 and 13. If sellers keep moving south, yearly lows around 125.00 might come into the picture, putting 127.50 lows in jeopardy and under pressure.
EURJPY Short term Trend: Bearish
EURJPY holds above 128.00 on the 4-hour timeframe, with a bearish intraday bias. A breach of the 128.58 level, on the other hand, would point to a retest of the 130.00 zones. In the medium term, however, the exchange rate may make a short-term return towards the horizontal barrier at 128.58.

The next support level of 127.50 is a potential objective for bearish traders. It will aim for a further decline if it falls below the 128.00 barriers. The restart of the whole corrective decline from 134.11 will be confirmed by a solid break there. However, the lower border of the ascending trendline may provide support for the exchange rate in the short term.

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