EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downward correction as price attempts to break above the 21-day moving average line. If buyers push the pair above the 50-day moving average line, the currency pair will be in the bullish trend zone. The market will rise to retest the previous high of level 133.00. Conversely, if buyers fails to break above the moving averages, the currency pair will resume a downward correction.
EUR/JPY Indicator Analysis
The pair is at level 46 of the Relative Strength Index for period 14. The pair is in the downtrend zone and below the centerline 50. The price bars are below the 21-day SMA and the 50-day SMA indicating the downtrend zone. If price breaks and closes above the resistance line of the descending channel, it will signal the resumption of the uptrend. The pair is above the 80% range of the daily stochastic. The market 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 pair’s upward move is doubtful as the market reaches the overbought region. The pair ought to revisit the previous high of level 133.00. Presently, it is facing rejection at level 129.10. Meanwhile, on December 7 uptrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise to level 2.0 Fibonacci extension or level 129.50. From the price action, the pair is facing rejection at level 129.10.
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