EUR/JPY Hits Bearish Exhaustion as It Retests Its Prior Low at 156.00

Key Resistance Levels: 160.00, 162.00, 164.00
Key Support Levels: 150.00, 148.00, 146.00

EUR/JPY Price Long-term Trend: Bearish
The EUR/JPY currency pair has dropped considerably as it retests its prior low at 156.00. On December 19, the currency pair corrected higher but was rebuffed at the 21-day simple moving average. The pair is currently retracing to the downside.

The Yen will fall and retest the prior lows of 154.00 and 155.00. Presently, it is trading above the 154.00 mark. 

Daily Chart Indicators Reading:
The price bars are positioned beneath the moving average lines. The Yen has dropped to bearish fatigue. The extended candlestick tails at the bottom of the chart signal that there is strong buying pressure at lower price levels. The currency pair is trading above the 154.00 mark.

The moving average lines have a decreasing slope. The Yen receives a bearish crossover as the 21-day SMA crosses below the 50-day SMA.

EUR/JPY Medium-term Trend: Bearish
The Yen is trading below the moving average lines on the 1-hour chart. The Yen rose and broke above the moving average lines. The upward correction ended as the pair fell. The Yen made an upward corrective after the December 20 drop, and a candle body tested the 61.8% Fibonacci retracement line.

The EUR/JPY is expected to fall to the 1.618 Fibonacci extension, or level 155.72, as a result of the correction.

1–Hour Chart Indicators Reading:
The moving average lines are slanted downward, indicating a downward trend. The decline has eased above the level of 154.00. The price movement has been immobile due to the dominance of the Doji candlesticks on the 1-hour chart.

The Yen is projected to remain stable above the 155.00 support level.

General Outlook for EUR/JPY
The EUR/JPY pair depreciates as it retests its prior low at 156.00. The market price has been ranging between 154.00 and 157.00. Buyers are attempting to resume the upswing but are met with resistance at level 157.00. If the price breaks above the moving average lines and the resistance level of 157.00, the Yen will resume positive momentum.

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