EURJPY Bears Struggle at Key Resistance Levels

EURJPY is currently heading south following the unsuccessful battle with the 162.30 resistance level, which is the 38.2% Fibonacci retracement level of the down leg from 175.37 to 154.40. However, a more important struggle for the bulls could come at the 164.00 psychological level, which coincides with the 200-day simple moving average (SMA).

Bulls vs Bears

The bulls are facing a tough challenge as they try to break above the 164.00 level. This level not only represents a psychological barrier but is also backed by the 200-day SMA, which adds to its significance. On the other hand, the bears are looking to capitalize on the failed attempt to break the 162.30 resistance level and are pushing the price lower.

Fibonacci Retracement

The 38.2% Fibonacci retracement level at 162.30 played a crucial role in the recent price action. It acted as a strong resistance level, signaling that the bears are still in control. If the bulls manage to overcome this level, the next major obstacle will be at 164.00.

Impact on Traders

For traders involved in EURJPY, the current struggle between bulls and bears at key resistance levels could present trading opportunities. A break above 164.00 could lead to further upside potential, while a move lower could signal a continuation of the downtrend.

Global Market Impact

The outcome of the battle between bulls and bears in EURJPY could have broader implications for the forex market. A bullish breakout could signal renewed confidence in the Euro and Japanese Yen, while a bearish move could lead to increased volatility and uncertainty.

Conclusion

EURJPY is currently at a critical juncture, with bulls and bears fighting for control at key resistance levels. Traders should monitor the price action closely to identify potential trading opportunities, while keeping an eye on the broader market impact of this struggle.