EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downtrend as it may revisit level 135.37 low. Since August 9, buyers have been struggling to break above the 21-day line SMA but were repelled. The pair is likely to further decline. Meanwhile, on August 2, a retraced candle body tested the 61.8% Fibonacci retracement. The retracement suggests that EURJPY will fall to level 1.618 Fibonacci extension or level 130.76.
EUR/JPY Indicator Analysis
EUR/JPY is at level 48 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 60% range of the daily stochastic. The market is in a bullish momentum. The 50-day line SMA and the 21-day line SMA are sloping southward 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 upward correction is stuck as it may revisit level 135.37 low. The implication is that the currency pair is likely to decline. The downtrend will resume if price breaks below level 135.00. A break below the current support will cause the pair to reach level 130.76.
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