EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downward move as price breaks below the moving averages. The breakdown is an indication of a further downward move. On November 12, the bears broke below the moving averages and the selling pressure extended to December 1. In other words, the currency pair fell from level 133.00 to the low of level 128.14. Meanwhile, on November 19 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise but will reverse at level 1.272 Fibonacci extension or level 126.54.
EUR/JPY Indicator Analysis
The pair has fallen to level 37 of the Relative Strength Index for period 14. The pair is in the downtrend zone and it is approaching the oversold region. The price bars are below the 21-day SMA and the 50-day SMA indicating a possible fall of the currency pair. The pair has a bearish crossover as the 21-day SMA crosses below the 50-day SMA indicating a sell signal.
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?
On the 4-hour chart, the pair is in a downward move. The selling pressure will persist when the price bars are below the moving averages. According to the Fibonacci tool, the pair will fall but reverse at level 1.272 Fibonacci extension or level 126.54.
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