EUR/JPY Long-Term Analysis: Bearish
EUR/JPY upward move has been terminated as it faced rejection at level 134.00 resistance. The currency price broke below the moving averages as the market resume selling pressure. Meanwhile, on June 21 downtrend; a retraced candle body tested the 50% Fibonacci retracement. The retracement indicates that the pair will fall to level 2.0 Fibonacci extension or level 125.32.
EUR/JPY Indicator Analysis
EUR/JPY has fallen to level 34 of the Relative Strength Index period 14. It indicates that the pair is approaching the oversold region of the market. RSI is said to be oversold if price falls below level 30. Nonetheless, the currency pair has fallen below the 20% range of the daily stochastic. It indicates that the market is in the oversold region. The pair has reached bearish exhaustion as buyers are likely to emerge. The 50-day SMA and 21-day SMA are sloping downward.
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, EUR/JPY pair is in a downward move. The currency pair has broken below the moving averages as the market resumes a downtrend. Meanwhile, on July 7 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that EUR/JPY will fall and reverse at level 1.272 Fibonacci extensions or level 129.99.
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