EURJPY is struggling to progress past the falling red Tenkan-sen line at 128.44 after rebounding from around the 127.37 level, in the wake of a seven-week decline from the 133.47 peak. The entangled simple moving averages (SMAs) are currently not revealing a reliable trend in the pair.

That said, the Ichimoku lines are indicating that negative forces are taking a breather, while the short-term oscillators are suggesting positive powers are growing. The MACD, far beneath the zero mark, is preparing to overstep its red trigger line. The RSI is improving in bearish territory, while the bullish stochastic oscillator is promoting upside price action.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

That said, at press time in the 1-hour chart, the EUR/JPY pair is facing strong resistance at the confluence of the 50, the 100-hour SMA’s, and the daily central pivot point at 127.87. During the New York session, the EUR/JPY pair has remained subdued, within a 21-pip range, but it is worth noting that most of the last eight 1-hour candles have a very long bottom wick, which shows that buying pressure, could be accumulating around that area. In the outcome of breaking to the upside, the first resistance would be the December 6 high at 128.08. A breach of the latter would expose the 200-hour SMA at 128.14, followed by the R1 daily pivot at 128.24, and then the R2 daily pivot at 128.44.

On the flip side, in the case of falling further, the first support would be the S1 daily pivot at 127.66, followed by the December 6 low at 127.50 and then the S2 pivot at 127.29.

EURJPY Faces Daily Resistance at 128.44

Dec 08 2021

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