The year 2020 was good for the EURJPY bulls after the price opened at $121.92 and closed at $126.11. . Taking a further look at $EURJPY, the first half of this year was full of higher highs and higher lows till June. The bears took charge of the EURJPY pair after the highest level in the year was reached on the 1st of June, at $134.09 when the price began the downward trend.
The 4hr chart has shown multiple oversold positions, which could be an indication of a possible rally. There is a likelihood $EURJPY reaches $130.58 in the coming weeks as last week’s candlestick was bullish. A double bottom has been formed at $127.90 in the month of August and September. As the price is currently at $129.64, we should be seeing price movement towards the psychological level at $130.00 next week. News released shows Sweden producer price index surged in August by 1.8%; the Italian consumer confidence improved in September as of today. These could be the reasons the EUR has been appreciating against the YEN.