EUR/JPY Long-Term Analysis: Bullish
On March 28, the EUR/JPY pair surged to the high of level 137.54 and resumes downtrend. The bulls broke the overhead resistance at level 133.15 but were repelled at the recent high. The downtrend is likely to resume as the pair faces rejection from the recent high. The current fall may extend to the low of level 133.15 which is the breakout level. However, the selling pressure will resume if the bears break below level 133.15 support. Nonetheless, EUR/JPY will regain bullish momentum if the pair finds support above the moving averages.
EUR/JPY Indicator Analysis
EUR/JPY is at level 69 of the Relative Strength Index for period 14. The market has reached the overbought region. The pair is falling as sellers emerge in the overbought region. The bears have broken the bullish trend line. The implication is that the selling pressure will resume to the downside. Similarly, EUR/JPY is below the 50% range of the daily stochastic. It indicates that the market has resumed bearish momentum. The 21-day SMA and 50-day 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?
EUR/JPY is in an uptrend but resumes downtrend. The currency pair has reached the overbought region of the market. On March 28, the pair declined to the low of level 135.18 from the recent high. Today, the current support has been breached as the currency pair declined to the breakout level of 133.15.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results