EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downtrend as it consolidates above Level 127.29. The currency pair has revisited the previous low at level 127.37. Since August 2021, the pair has been trading above the level 127.00 price level. The bears have not been able to break the current support. Similarly, the bulls have not been able to breach the resistance at level 133.00. EUR/JPY has been in a range-bound move because of the sideways trend. The currency pair has reached the oversold region of the market. Buyers are likely to push the pair upward.
EUR/JPY Indicator Analysis
The pair has fallen to level 37 of the Relative Strength Index for period 14. It indicates that the market is in the downtrend zone and below the centerline 50. It is also approaching the oversold region of the market. The 21-day SMA and the 50-day SMA are sloping horizontally indicating a sideways trend. EUR/JPY is below the 30% range of the daily stochastic. The currency pair is in a bearish momentum.
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 has been in a downward move as it consolidates above Level 127.29. The currency pair has reached bearish exhaustion. Meanwhile, on February 14 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 128.24. From the price action, EUR/JPY has fallen beyond the 1.618 Fibonacci extension or 127.69.
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