EUR/JPY Long-Term Analysis: Ranging
EUR/JPY pair is in a sideways trend but revisits previous low at level 130.32. The upward move has been restricted below level 131.00. The pair is retracing to the support above the moving averages. The sideways move will resume if price finds support above the moving averages. Besides, EUE/JPY will rise to retest level 131.00 and 134.00 resistance levels. It will signal the resumption of an uptrend if price breaks above level 134.00 overhead resistance. It is unlikely that price will break below the moving averages.
EUR/JPY Indicator Analysis
Despite the retracement, the pair is at level 52 of the Relative Strength Index for period 14. It indicates that the market is in the uptrend zone and above the centerline 50. The market is likely to further rise.The index price is above the 21-day SMA and the 50-day SMA which indicates that the market will rise on the upside. The 21-day SMA and the 50-day SMA are sloping horizontally indicating a sideways trend. EUR/JPY is below the 20% range of the daily stochastic. The currency pair has fallen to the oversold region of the market. The selling pressure is likely to end.
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 1-hour chart, EUR/JPY is in a downtrend but revisits previous low at level 130.32.. The currency pair is falling after facing rejection twice at level 131.00. Meanwhile, on January downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that EUR/JPY will fall to level 1.618 Fibonacci extension or level 130.56. From the price action, the market has retested the Fibonacci extension and has reached the oversold region of the market.
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