EURJPY Price Analysis: A bullish-engulfing pattern to open the way toward 146.00 and beyond
- A bullish-engulfing candle pattern in the EURJPY daily chart could open the door for further gains.
- If the EURJPY struggles at 146.00, a fall towards 144.00 is on the cards, ahead of the 50-day EMA at 143.15.
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%.
EURJPY Price Analysis: Technical outlook
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.
EURJPY Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
