EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downtrend as it continues a sideways move. Since August 2, the pair has been trading above level 135.37 . The price movement has been insignificant because of the presence of small body indecisive candlesticks called Doji and Spinning tops. The downtrend will resume if price breaks below the current support at level 133.39. The uptrend will resume if price breaks above the 21-day line SMA.
EUR/JPY Indicator Analysis
EUR/JPY is at level 43 of the Relative Strength Index for period 14. It indicates that the Yen is in the downtrend zone and may decline. The pair is below the 40% range of the daily stochastic. The market is in a bearish momentum. The 50-day line SMA and the 21-day line SMA are sloping southward indicating the downtrend.
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 in a downtrend as it continues a sideways move. On the July 4 downtrend, a retraced candle body tested the 78.6% Fibonacci retrenchment. The retracement suggests that EURJPY will fall to level 1.272 Fibonacci extension or level 134.85. From the price action, the Yen has retested the 1.272 Fibonacci extensions and resumed consolidation above it.
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