Technical analysis and price action during early November highlight trends in the EURJPY pair.
The EURJPY currency pair on the 4-Hour Chart has been in a downtrend since 9 November 2020 when it registered the high price at 125.122, followed by a series of lower tops and lower bottoms.
On 19 November 2020, the EURJPY currency pair recorded the low price of 122.837.
When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms the EURJPY currency pair’s downward direction.
Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of financial instrument.
Additionally, the Relative Strength Index (RSI) Oscillator registers values below the fifty line which indicates negative sentiment.
All three technical indicators are in agreement with regards to the downward bias of the pair.
Fibonacci Levels – Price Targets
Three price targets may be calculated upon applying the Fibonacci tool to the price chart.
- The first price target is estimated at 123.167 (161.8%).
- The second price target is seen at 122.388 (261.8%).
- The third price target is projected at 121.127 (423.6%).
While the first target has already been breached, the EURJPY currency pair is currently trading below the downtrend line.
Of course, supply and demand as well as the crowd sentiment will determine the future course of EURJPY.
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