Daily Price Action
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EURJPY Reacts to Key Resistance at 129.20

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use.

Following a rather aggressive selloff in October, EURJPY has bounced back this week. Last Friday’s bullish pin bar hinted at an upcoming surge higher, and that’s exactly what we got this week.

However, buyers are testing an area that could prove to be a roadblock for the relief rally. The 129.20/30 area is one I mentioned several times last month. You can see how this region attracted buyers during several sessions in mid-October.

129.20/30 is also the 38.2% Fibonacci retracement when measuring from the September high to the October low.

You can already see how EURJPY has come under pressure so far today. The pair is off today’s high by 50 pips so far which is a testament to the 129.20/30 resistance area.

Bearish price action from here could trigger a move lower next week. As you might have guessed, key support comes in at last week’s low of 126.70. Though I could also make a strong case for the 127.00 handle.

A daily close (New York 5 pm EST) below 126.70 would expose the multi-month range low at 125.00. Alternatively, a close above 129.30 would expose 130.90.

EURJPY support and resistance levels

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13 comments
Nasso says

How to EURUSD

Reply
anas says

Nice analysis.. have a nice weekend.

Reply
    Justin Bennett says

    Thanks. Same to you. 🙂

    Reply
Colin de Ste Croix says

Might pay to wait on this one?. GBP/JPY retested 147 also!!

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Francis says

Please am alway confused on this: (you use new york 5pm est closing) my question now is; 1) which candle is considered closed at 5pm est? Is it the candle that formed at 4pm est and closed 5pm est? Or the candle that open at 5pm est and closed 6pm est?

Reply
    Justin Bennett says

    Hi Francis, a daily candle using a New York close chart should open AND close at 5 pm EST.

    Reply
Francis says

And during summer time, is the 5pm est closing shifted to 6pm est? Please clarify me

Reply
    Justin Bennett says

    No, it remains 5 pm EST.

    Reply
Pierre Mifsud says

I see it moving to the 131.28 on the 4 hour

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infiniti links says

it is nice analysis and as well accurate.
thanks

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Steve Ochieng says

Thanks man, your analysis are great indeed. I appreciate it.

Reply
    Justin Bennett says

    My pleasure, Steve. Let me know if you have any questions.

    Reply
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