EUR/JPY Resumes Uptrend as It Struggles With the Resistance at Level 142.00

EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair is in an uptrend as it struggles with the resistance at level 142.00 . However, the uptrend has been repelled at level 142.00 high. The currency price has slumped above the moving average lines. The downtrend will resume if price breaks below the moving average lines. Meanwhile, a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement suggests that the pair will fall to level 1.2618 Fibonacci extension or level 137.47. From the price action, the previous downtrend has subsided as price breaks above the moving average lines. Today, the bears are attempting to break below moving average lines to resume the downtrend.


EUR/JPY Indicator Analysis
EUR/JPY is at level 51 of the Relative Strength Index for period 14. It indicates that there is a balance between supply and demand. The 50-day line SMA and the 21-day line SMA are sloping horizontally. The Yen is below the 20% range of the daily stochastic. The market has resumed bearish momentum but has reached the oversold region. The selling pressure has reached bearish exhaustion as buyers emerged in the 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 will resume an upward move as it struggles with the resistance at level 142.00. Nevertheless, if the pair retraces and finds support above the moving average lines, the uptrend will resume. The Yen has fallen to the oversold region and it is expected that buyers will be attracted at the lower levels of price.

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