EUR/JPY Long-Term Analysis: Ranging
EUR/JPY is in a sideways trend as the pair reaches the overbought region.The Yen has been compelled to a sideways move as buyers fail to keep price above level 134.00 high. The currency pair has fallen to the low of level 127.70 and made an upward correction. The upward move has reached the high of level 130.35. The currency price has broken above the moving averages. There is the likelihood of further upward move. The Yen will rise to retest the overhead resistance at level 134.00.
EUR/JPY Indicator Analysis
The Yen has fallen to level 53 of the Relative Strength Index for period 14. The pair is in the uptrend zone and capable of a further upward move. The pair price bars are above the moving averages indicating a possible upward movement of the currency pair. EUR/JPY is above the 80% range of the daily stochastic. There is a likelihood of price retracement as the market reaches the overbought region. The 21-day and 50-day SMAs are sloping horizontally indicating the downtrend.
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 resumed an uptrend as the pair reaches the overbought region. The price bars have broken above the moving averages. The upward movement will continue to the upside if the present overbought condition is overcome. The Yen is currently retesting the resistance at $130. In October, the bulls broke the resistance level but sellers push the price back to the range-bound zone. Today, the bulls are attempting to keep the price above the recent high.
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