EURJPY Price Is Approaching Supply Level of $122, a Price Reversal Zone

The price may break up the supply level of $122 provided the bulls increase their momentum and it may rally towards the supply level of $123. In case the supply level of $122 holds, the EURJPY price may bounce off the level and decrease towards the demand level of $120.

EURJPY Market

Key Levels:

Supply levels: $122, 123, $125
Demand levels: $120, $119, $117

EURJPY Long-term Trend: Bullish

On the long-term outlook, EURJPY is bullish. The Bears could not sustain their momentum after breaking down the demand level of $120 on January 03. The Bulls opposed further decrease in price with the formation of a strong daily bullish candle and the price propelled towards the supply level of $122. The price action has formed a bullish “W” pattern.

EURJPY has penetrated the two EMAs upside and currently trading above the 21 periods EMA and 50 periods EMA, which indicates that buyers are taking over the EURJPY market. The price may break up the supply level of $122 provided the bulls increase their momentum and it may rally towards the supply level of $123. In case the supply level of $122 holds, the EURJPY price may bounce off the level and decrease towards the demand level of $120. The Relative Strength Index period 14 is above 50 levels with the signal lines pointing up to indicate a strong buy signal.

EURJPY medium-term Trend: Bullish

EURJPY is bullish on the 4-hour chart. On the 4-hours chart, the price action has formed a “W” pattern which is a bullish reversal pattern. The price is heading towards the resistance level of $122. In case the level does not hold, a $123 price level will be the target.

The 21 periods EMA has crossed the 50 periods EMA upside and the price is trading above the two EMA which indicates that the Bulls’ momentum is on increase. The relative strength period 14 is above 60 levels and the signal line pointing up to indicate a buy signal which may be a pullback.