EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downtrend as it faces rejection at 135.00. For the past week, the bulls have been making frantic efforts to break above the moving averages. The upward move has been hindered by the resistance at the 21-day line SMA. Today, the upward move has been hindered by the 50-day line SMA. The downtrend will resume if price breaks below the bullish trend line. On the other hand, the market will resume upward, if price breaks above the moving averages.
EUR/JPY Indicator Analysis
The currency pair is at level 47 of the Relative Strength Index for period 14. The Yen is in the bearish zone and capable of a further downward move. The price bars are below the moving averages indicating a further downward move. The pair is above the 40% range of the daily stochastic. It indicates that the market is in bullish momentum. The 21-day line SMA and 50-day line SMA are sloping upward indicating the uptrend.
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?
The currency pair is below the moving averages as it faces rejection at 135.00. There is a likelihood of a downtrend as the bulls fail to break above the moving averages. The pair will decline to the previous low at 129.75 if the bears break below the bullish trend line.
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