EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair has recovered from the current downtrend as it reaches overbought condition at 128.87. The pair plunged to the low of level 124.39 and rebounded. The EURO is making an upward correction as price reaches the high of level 128.46. On the upside, if the bulls break above the moving averages, the pair will retest the resistance at level 133.00. However, if the bulls fail to break above the moving averages, the downward correction will continue.
EUR/JPY Indicator Analysis
The recent upward correction has pushed the pair to level 47 of the Relative Strength Index for period 14. The EURO is still 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 sideways indicating a sideways trend. EUR/JPY is above the 80% range of the daily stochastic. The currency pair is likely to resume bearish momentum because the market has reached an overbought region.
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 an upward move as it reaches overbought condition at 128.87. The current uptrend is facing resistance at the recent high. Meanwhile, on March 8 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that EUR/JPY will rise to level 1.618 Fibonacci extension or level 128.15. From the price action, EUR/JPY is retesting level 1.618 Fibonacci extension for a possible decline.
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