EUR/JPY Declines from the Recent High, Resumes Consolidation above Level 130.00

Key Resistance Levels: 132.00, 133.00, 134.00
Key Support Levels: 129.00, 128.00, 126.00

EUR/JPY Price Long-term Trend: Bullish
EUR/JPY pair is in a sideways trend as it resumes consolidation above level 130.00 Despite the retracement, the currency pair is above the moving averages. This indicates that the Yen is likely to resume upward above the 130.38 support. However, if the selling pressure resumes and breaks below the moving averages, EUR/JPY will revisit the previous low at level 128.20

Daily Chart Indicators Reading:
EUR/JPY is at level 54 of the Relative Strength Index for period 14. The pair is trading in the uptrend zone and may further rise as it finds support above the moving averages. The 21-day SMA and 50-day SMA are sloping horizontally indicating the sideways move.

EUR/JPY Medium-term Trend: Bearish
On the 4- hour chart, the EUR/JPY is in a brief uptrend. Meanwhile, on February 6 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise but will reverse at level 1.272 Fibonacci extension or level or level 132.92. From the price action, the market has declined to the previous lows.

4-Hour Chart Indicators Reading
EUR/JPY is below the 20% range of the daily stochastic. The pair has fallen to the oversold region of the market. The Yen is trading in a sideways move as it declines to the oversold region. We expect buyers to emerge in the oversold region to push prices upward. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for EUR/JPY
EUR/JPY has been retracing from level 133.00 overhead resistance as it resumes consolidation above level 130.00. The selling pressure has reached bearish exhaustion as the pair fell to the oversold region. The market will revisit the previous high.


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