EUR/JPY Long-Term Analysis: Bearish
EUR/JPY has been in a downward move. The market has been declining after its rejection from level 134.00. The price upward move has been resisted by the 21-day SMA. A further downward movement is expected. On July 19, the market declined to the low at level 129.00. For the past week, the downtrend has been interrupted as the market resumed consolidation above the current support. Meanwhile, on June 21 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the pair will fall to level 2.0 Fibonacci extensions or level 126.10.
EUR/JPY Indicator Analysis
The currency pair has fallen to level 45 of the Relative Strength Index period 14. It indicates that the pair is in the bearish trend zone and capable of falling on the downside. The 50-day SMA and 21-day SMA are sloping downward. The pair has a bearish crossover. EUR/JPY pair is above 75% range of the daily stochastic. It indicates that the market is a bullish momentum.
Major Resistance Levels – 133.00, 134.000, 135.000
Major Support Levels – 128.000, 127.000, 126.000
What Is the Next Direction for EUR/JPY?
EUR/JPY pair is in a downward move. The selling pressure is likely to continue on the downside. In the lower time, the market declined to level 129.00 and resumed upward correction. Meanwhile, on July 8 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY will decline to level 2.0 Fibonacci extensions or level 126.83.
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