EUR/JPY Long-Term Analysis: Bearish
EUR/JPY is in a downward move. The selling pressure is not over as price makes an upward correction. The current downtrend is making a series of lower highs and lower lows. Today, the currency pair is making a lower high which will propel the resumption of the downtrend. 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 125.89. From the price action, the pair has declined to level 129.00 but it is correcting upward.
EUR/JPY Indicator Analysis
EUR/JPY has fallen to level 43 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. EUR/JPY pair has risen above 80% range of the daily stochastic. It indicates that the market is in the overbought region. The selling pressure is likely to continue.
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 but the pair is correcting upward. On the 4-hour chart, the upward correction is facing rejection at the recent high. The market is approaching the overbought region. Meanwhile, on July 8 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY will fall at level 2.0 Fibonacci extensions or level 126.83.
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