EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair is in a downtrend as sellers target level 137.40. On September 12, the pair rallied to the high of level 145.63. The Yen has reached the overbought region of the market as it faced rejection at the recent high. Nonetheless, buyers have never sustained the bullish momentum above the level 144.00 overhead resistance. EUR/PY has declined to the low of level 138.85. The Yen will further decline as price breaks below the moving average lines.
EUR/JPY Indicator Analysis
EUR/JPY is at level 41 of the Relative Strength Index for period 14. It indicates that the Yen has fallen to the downtrend zone and may further decline. The currency prices are below the moving average lines which indicates further decline. The 50-day line SMA and the 21-day line SMA are sloping horizontally indicating a sideways trend. The pair is below the 20% range of the daily stochastic. The Yen has fallen to the oversold region of the market. It implies that the selling pressure has reached bearish exhaustion.
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?
On the 4- hour chart, EUR/JPY is in a sideways move as sellers target level 137.40. On September 20, the Yen plunged to the low of level 138.71 but the bulls bought the dips. The selling pressure will resume if price breaks below the moving average lines. Meanwhile, on September 22 downtrend, a retraced candle body tested the 78.6% Fibonacci retrenchment level. The retracement suggests that EURJPY will fall to level 1.272 Fibonacci extension or level 137.40.
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