EURJPY Turns From Record High Near 133.50, on Resurgence for Haven

EURJPY Price Analysis – May 21

Following Wednesday’s record highs in the 133.50 regions, EURJPY continues to fall. Meanwhile, the risk complex is in a generally better mood, with investors expecting revived demand for the Japanese Safe-haven and falling US yields. A combination of factors, such as ECB fiscal policy, could reduce the upside potential against the JPY.

Key Levels
Resistance Levels: 134.50, 134.00, 133.50
Support Levels: 132.50, 132.00, 131.50
EURJPY Long term Trend: Ranging
On Friday, the EURJPY opened higher at 132.98 and traded to 132.70. The pair retreated and bears emerged as traders focused on levels below 133.00. To investigate the bearish scenario, a definitive fall below 132.50 must be identified. The pair can continue to fall, with bearish traders targeting the sub 132.00 level as a possible target.

Growth from 121.61 is seen as a mid-term phase of growth amid a long-term consolidation trend in a wider sense. As long as the 131.00 support level holds, further gains are anticipated. A strong breakout of 131.00, on the other hand, will confirm that the rebound from 121.61 has come to an end, bringing this low back into view.
EURJPY Short term Trend: Ranging
With the current retreat, the intraday bias in EURJPY has shifted slightly bearish at the upside channel. Meanwhile, below the 133.50 temporary peaks, some consolidations can be seen. However, as long as the 132.50 resistance-turned-support level remains intact, further range trading is anticipated.

On the upside, a break above 133.50 could relaunch the bullish trend from 121.61 to 131.00 to 132.50 from 129.56 at 133.43. The EURJPY has also risen above its 5 and 13 day moving averages, whereas the 4-hour RSI is hovering near its neutral axis. The pair could revert to the 132.50 level if the downward trend continues.

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