EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downward correction as it faces rejection at level 137.75. The upward move has reached the high of level 137.75. It is the resistance level of the July 12 price level. The pair will rally above the moving average lines if the bulls breach the initial resistance at the level 137.00 high. The Yen will revisit the previous low at 135.00 if the Yen turns from the recent high.
EUR/JPY Indicator Analysis
EUR/JPY is at level 45 of the Relative Strength Index for period 14. It indicates that the Yen is in the downtrend zone and may decline. The Yen is above the 80% range of the daily stochastic. It is trading in the overbought region of the market. The market will decline as sellers emerge. The 50-day line SMA and the 21-day line SMA are sloping horizontally indicating a sideways move.
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?
Generally, EUR/JPY is in a downtrend as it faces rejection at level 137.75. In the lower time frame, the upward correction has reached the overbought region of the market. The pair is likely to decline as sellers emerge in the overbought region. Meanhile, on the August 3 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that EURJPY will rise to level 1.618 Fibonacci extension or level 137.57. From the price action, the pair is falling as it reached above 80% range of the daily stochastic.
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