EUR/JPY Is on a Downtrend, With a Target of 134.16

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
The price of the EUR/JPY pair has fallen below the moving average lines, with a target of 134.16. Buyers have been attempting to break the overhead resistance at level 146.00 since October 2022. Buyers failed to maintain the price above the resistance level four times. Today, the currency pair has dropped to a low of 138.07. There is a chance that prices will fall even further. On December 20, the pair corrected upward, and the candle body tested the 61.8% Fibonacci retracement line. The upward correction predicts that the EURJPY will fall to the Fibonacci extension of 1.618, or level 134.16.

Daily Chart Indicators Reading:
The pair is at level 33 on the Relative Strength Index for period 14. It is in a downward trend and will continue to fall as it approaches the market’s oversold region. The price bars are below the moving average lines, indicating that the price will continue to fall. The horizontal sloping of the 21-day and 50-day SMA lines illustrates the lateral movement.

EUR/JPY Medium-term Trend: Bearish
The Japanese Yen is in a decline on the 4-hour chart. The price of the currency is exhibiting a pattern of lower highs and lower lows. On January 3, when bulls purchased the dips, the pair fell to a low of level 137.38. Currently, the pair is bouncing over the existing support.

4-Hour Chart Indicators Reading
The Yen has crossed the daily Stochastic threshold of 20. The currency pair has hit the oversold region of the market. It’s conceivable that the selling pressure will lessen. The downward slope of the moving average lines indicates a decline.

General Outlook for EUR/JPY
EUR/JPY has fallen into the market’s oversold zone with a target of 134.16. According to the price indicated, the currency pair will fall further to 134.16. The pair will return to the August 2020 historical price level.


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