EUR/JPY Falls as It May Return to Level 154.74

EUR/JPY Significant Levels

Resistance Levels: 164.00, 166.00, and 168.00
Support Levels: 158.00, 156.00 and 154.00

EUR/JPY Price Long-term Trend: Ranging

The EUR/JPY exchange rate is trending sideways as it may return to the level of 154.74. The currency pair saw an upward correction on January 7, however, it was rebuffed at its peak of 164.54. The resistance at the most recent high has caused the Yen to weaken. The Yen will keep losing strength below the moving average line.

A retraced candle body tested the 38.2% Fibonacci retracement line after the Yen corrected upward after the January 3 price drop. According to the upward correction, the Yen will drop to the Fibonacci extension level of 154.74, or level 2.618.

Daily Chart Indicators Reading:

The bearish trend fell below the moving average lines on January 16, signaling that the currency pair would continue to drop. The trend is indicated by the horizontal moving average lines. The horizontal moving average lines are sloping above and below the price bars.

EUR/JPY Medium-term Trend: Bearish

The Yen is declining and creating a string of lower highs and lower lows on the 4-hour chart. The currency pair has been falling since January 13 and has briefly halted above 160.00. The Yen trades below the moving average lines but above the 160.00 mark. On the downside, if the current support is broken, the Yen will drop to a low of 154.00.

4-Hour Chart Indicators Reading

The fall is indicated by the moving average lines on the 4-hour chart that slope southward. A bearish indication is shown by the 21-day SMA being below the 50-day SMA. The price bars’ resistance line is the 21-day SMA. The Yen is currently declining as it encounters resistance at the 21-day SMA.

General Outlook for EUR/JPY

The EUR/JPY heads horizontally toward the lower price range as it may return to level 154.74. The Yen has been trading in a narrow range between the 156.00 and l66.00 price levels since December 2. The Yen is trading in a small range above 160.00 but below the lines of the moving average. Since the pair stays inside a narrow range, the forex signal is range-bound.

 
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