EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair downward move has reached bearish exhaustion. The currency pair has broken above the 21-day line moving average. The pair will resume upside momentum if price breaks above the 50-day line moving average. This will signal the resumption of upside momentum. The current downtrend reached the low of level 127.400 before resuming upward. Today, the market has risen to level 128.76 at the time of writing. There is a likelihood of further upward movement of the currency pair as the downtrend terminates.
EUR/JPY Indicator Analysis
As the currency price breaks and closes above the moving averages, the downtrend is presumed to have been terminated. If price breaks above the 21-day and 50-day moving averages, it will signal the resumption of the uptrend. Meanwhile, the pair is at level 48 of the Relative Strength Index for period 14. The pair is in the downtrend zone and below the centerline 50. The price is above the 80% range of the daily stochastic. The market has reached the overbought region of the market.
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’s downtrend has reached bearish exhaustion. The bulls have emerged to push prices upward. Since November 26, the selling pressure has reached bearish exhaustion. Meanwhile, EUR/JPY is fluctuating between levels 127.45 and 129.00. The uptrend will resume if price breaks and closes above level 129.00.
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