EUR/JPY Surges Ahead but Declines as It Reaches Level 144.25

EUR/JPY Long-Term Analysis: Bullish
EUR/JPY pair is in an uptrend as it reaches Level 144.25. The Yen is retracing because the market has reached an overbought region . The Yen is expected to retrace to the previous low of level 140.00. The market will resume upward if the pair finds support above level 140.00 price level. However, if the bears break below the 140.00 support, the market will further decline to the low of level 135.00.

EUR/JPY Indicator Analysis
The Yen is at level 68 of the Relative Strength Index for period 14. On June 8, the Yen reached an overbought region of level 75. Today, sellers have emerged in the overbought region as the pair resumed its downward move. On the downside, if the bears break below the moving averages or the trend line, the current uptrend is presumed to be terminated. Also, the Yen is below the 80% range of the daily stochastic. The market has resumed bearish momentum.

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 was earlier in an uptrend  as the pair reaches Level 144.25. On the lower time frame, the Yen has retraced and broken below the 21-day line SMA but it is above the 50-day line SMA. On the downside, if the bears break below the 50-day line SMA, the selling pressure will be accelerated. Also, the uptrend will be said to be terminated when price breaks below the moving averages. EUR/JPY is trading at level 142.44 at the time of writing.

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