EUR/JPY Moves above 161.00 As It Begins to Rise

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 pair falls below the moving average lines and begins to rise. The currency pair has been producing a string of higher highs and higher lows in the preceding price action. The uptrend stopped after it reached a higher high of level 164.90. The Yen’s value dropped to a lower low of 160.89. Following an upward correction, the currency pair dropped to another low of level 161.21 on January 10 and has since resumed its sideways trend. The Yen is now trading in a narrow range between 161.00 and 165.00.

Daily Chart Indicators Reading:

Following the current drop on January 10, the price bars are below the moving average lines. The decline has been stopped above level 161.00 since it is heading sideways. The price bars have been trending above and below the horizontal moving average lines for the last three months.

EUR/JPY Medium-term Trend: Ranging

The Yen is moving sideways between levels 161.00 and 165.00 on the 4-hour chart. The currency pair has twice dropped above 161.00 before reversing course. The bulls defend the support at level 161.00 as the Yen continues its downhill movement. The upward correction will begin when the current support at level 161.00 remains stable. The bulls have been protecting the existing support since January 2.

4-Hour Chart Indicators Reading

Two candlestick tails on the 4-hour chart are pointing toward the current support. It exhibits strong buying pressure at 161.00. The horizontally sloping but downward-pointing moving average lines show the drop. The Doji candlesticks broke above the present support, halting the slide.

General Outlook for EUR/JPY

The EUR/JPY pair drops to a low of 161.00 and begins to rise. The upward trend will start while the Yen continues its horizontal movement. If buyers maintain the price above the moving average lines and the resistance at 166.00, the sideways trend will be broken. The forex signal is range-bound as the Yen begins to strengthen.
 

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