EUR/JPY Continues Sideways Move as It Faces Further Decline

EUR/JPY Significant Levels
Resistance Levels: 0.7400, 0.7600, and 0.7800
Support Levels: 0.7100, 0.6900 and 0.6700

EUR/JPY Price Long-term Trend: Bearish
EUR/JPY is in a sideways trend as it faces further decline. The previous uptrend was terminated on May 24 as the market reached the high of level 134.00. From the rejection at the recent high, the market declined to the low of level 128.00. Since August, EUR/JPY has been fluctuating between levels 128.00 and 134.0. The uptrend will resume if price breaks above the resistance at 134.00. The downward correction will continue as long as the overhead resistance remains unbroken. Today, the market is resuming upward to retest the overhead resistance.

Weekly Chart Indicators Reading:
EUR/JPY has risen to level 52 of the Relative Strength Index for period 14. The pair is in the uptrend zone and capable of a further upward move. The pair price bars are below the moving averages which indicate a further downward move.

EUR/JPY Medium-term Trend: Ranging
On the daily chart, EUR/JPY is in a sideways move below level 134.00. The currency pair is in a downtrend as buyers attempt to push the Yen above the moving averages. Presently, the uptrend is facing rejection at a recent high. The pair faces rejection at the recent high as the downward correction resumes.

Daily Chart Indicators Reading
The Yen is above the 80% range of the daily stochastic. The market has reached the overbought region of the market. The currency pair will fall as sellers emerge in the overbought region of the market. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.

General Outlook for EUR/JPY
EUR/JPY is in a downward correction as it faces further decline. The pair is likely to fall as the market reaches the overbought region. A break above the moving averages will push the pair to retest the overhead resistance.

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