EUR/JPY Is in a Downtrend as It Targets a Level of 139.76

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

EUR/JPY Price Long-term Trend: Bearish
EUR/JPY pair has resumed selling pressure as it targets a level of 139.76. Buyers could not sustain the bullish momentum as it reaches an overbought region of the market. The Yen has retraced above the moving average lines. The selling pressure will resume if price breaks below the moving average lines. The currency pair has fallen to the low of level 141.74 at the time of writing.

Daily Chart Indicators Reading:
The currency pair is at level 53 of the Relative Strength Index period 14. It indicates that the pair is in the bullish trend zone despite the retracement. The price bars are above the moving average lines. The pair will rise again if price holds above the moving average lines. The downtrend will resume if price breaks below the moving average lines. The moving average lines are sloping horizontally indicating the sideways move.

EUR/JPY Medium-term Trend: Bearish
On the 4-hour chart, the Yen is in a downtrend and has broken below the moving average lines. Meanwhile, on September 14 downtrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement suggests that EUR/JPY will fall to level 2.0 Fibonacci extension or level 139.76.

4-Hour Chart Indicators Reading
The pair is below the 20% range of the daily stochastic. The Yen has reached the oversold region. The current selling pressure is reaching bearish exhaustion. The price bars are below the moving average lines indicating further downward movement of prices.

General Outlook for EUR/JPY
EUR/JPY is in a downtrend as it targets a level of 139.76. The Yen has reached the oversold region of the market. The current selling pressure may terminate soon.


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