EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downward move. The pair is falling after rejection at level 130.50. As price breaks below the moving averages, the currency pair is likely to further decline. The market is expected to revisit the previous low at level 128.00. The uptrend will resume if that support at level 128.00 holds. However, if that previous low is breached, the market will further decline on the downside. Meanwhile, on June 22 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY will fall to level 2.0 Fibonacci extension or level 125.98.
EUR/JPY Indicator Analysis
EUR/JPY is at level 47 of the Relative Strength Index period 14. It indicates that the market is in the downtrend zone and below the centerline 50. The 21-day and 50-day SMA are sloping downward indicating the downtrend. The market is below the 20% range of the daily stochastic. It indicates that the currency pair has reached the oversold region.
Technical indicators:
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 is resuming a downward move. The currency pair has been trading marginally. The downtrend is expected to reach the lows at either level 128.00 or 126.00. Meanwhile, on September 9 downtrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY will fall to level 2.0 Fibonacci extension or level 128.66.
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