The EURJPY rises during the North American session, forming a bullish-engulfing pattern in the daily chart, nearby the weekly lows at around 144.00, and set to finish the week with losses of 0.66%. At the time of writing, the EURJPY is trading at 145.89, above its opening price by almost 1%.

As abovementioned, the EURJPY daily chart depicts a two-candle bullish formation that suggests upward pressure is mounting on the pair. The Relative Strength Index (RSI) offers further confirmation, as the oscillator dived towards the 50-midline, but as price action spiked towards the fresh two-day high shy of 146.00, the RSI slope turned bullish, in sync with the EURJPY price action.

If the EURJPY clears the 146.00 figure, it will pave the way for further gains. Firstly, the November 2 daily high at 146.48, followed by the 147.00 figure, ahead of the October 31 swing high at around 147.74.

On the other hand, failure to crack 146.00, the EURJPY could tumble towards the November 3 swing low at 144.03. A breach of the latter will expose crucial demand zones like the 50-day Exponential Moving Average (EMA) at 143.15, ahead of the psychological 143.00 figure and the 142.00 mark.

On an hourly scale, the asset has been dragged to near the knee-jerk reaction low recorded on October 24 at 143.72. 

The upside move in the cross has been restricted by the 20-period Exponential Moving Average (EMA) at around 144.62. And, the downward-sloping 200-EMA is hinting that the overall trend is bearish.

Trading Positions within the Intermediate Degree Correction

Nov 07 2022

Take Profit +2.56%

Holding time 23d13hr

146.183

Entry price

142.439

Take profit price