EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downtrend as it it faces rejection at level 130.00. On February 25 uptrend, the bulls fail to break above the moving averages, hence, the current downward move. The currency pair will fall to the previous low at level 127.91 if the bearish momentum is sustained. The Yen has been in a downward correction since February 24.
EUR/JPY Indicator Analysis
EUR/JPY has fallen to level 42 of the Relative Strength Index for period 14. The pair is in the downtrend zone after the rejection at the 50-day line moving average. It is capable of falling since it is below the centerline 50. The moving averages are sloping horizontally since the pair is a sideways trend. The currency price is below the 21-day SMA and the 50-day SMA which indicates a further down move.
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 pair is in a downward correction as it faces rejection at level 130.00. The pair fell to the low of level 128.91 and made an upward correction. It is facing rejection at a recent high of level 130.00. Meanwhile, on February 14 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that EUR/JPY will fall to level 1.618 Fibonacci extension or level 128.28. The Yen has reversed above the 1.618 Fibonacci extensions. However, it is facing rejection at a recent high.
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