EUR/JPY Long-Term Analysis: Bearish
EUR/JPY pair is in a downtrend but may resume upside momentum. The downtrend was accelerated as the currency pair faced rejection from the high of level 130.00. The Yen fell and hovered above the previous low at level 128.35. The Yen appears to have reached the oversold region of the market. 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 128.17.
EUR/JPY Indicator Analysis
EUR/JPY has fallen to level 36 of the Relative Strength Index for period 14. The pair is in the bearish trend zone and it is approaching the oversold region of the market. The moving averages are sloping horizontally indicating a sideways trend. The index price is below the 21-day SMA and the 50-day SMA which indicates that the pair is capable of further downward move. However, further downward move is unlikely as the Yen reaches 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 has resumed downtrend but may resume upside momentum. The pair was fluctuating between level 130.00 and 132.00 for the past week. 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 is hovering above the 1.618 Fibonacci extension.
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