EUR/JPY Long-Term Analysis: Bearish
EUR/JPY has been in a downward move. Today, the pair has fallen to the low of level 128.94. The currency price has broken below the previous level of 128.00 as the market continues the downward move. Meanwhile, on June 21 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the pair will fall to level 2.0 Fibonacci extensions or level 125.93.
EUR/JPY Indicator Analysis
The pair has fallen to level 36 of the Relative Strength Index period 14. It indicates that the pair is approaching the oversold region. The 21-day and 50-day SMA s are sloping downward indicating the downtrend. EUR/JPY is below the 50% range of the daily stochastic. It indicates that the market is in a bearish momentum. The pair will continue to fall on the downside.
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?
The market has been in a downward move. The pair is likely to continue the selling pressure to the low of level 127.00. On the 4 Hour Chart, the pair fell. On August 3 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that EUR/JPY will decline to level 2.0 Fibonacci extensions or level 127.83. From the price action, the market is approaching the Fibonacci extension.
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