EUR/JPY Oscillates as It Reaches Its Top at 164.00

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 rallies above the moving average lines as it reaches its top at 164.00. The currency pair has earlier fallen as low as level 159.72 before rising again. The Yen was range-bound between levels 156.00 and 166.00 in the most recent market activity. The increasing trend has now halted at the high of 164.00. This suggests that the range of the Yen’s trading is limited to values between 159.00 and 164.00.

In the meantime, the upward trend has peaked at level 164.00. The Yen has been repulsed twice at the high levels of 164.55 and 164.90, therefore it could be rejected on the upside. The EUR/JPY is trading at 164.08 today.

Daily Chart Indicators Reading:

On January 22, the currency pair broke above the lines of the moving averages. However, as the Yen approaches the overbought area of the market, a further upward advance seems improbable. The price bars above the moving average lines may be rejected as they reach the overbought region.

EUR/JPY Medium-term Trend: Bullish

Following its January 16 rebound, the Yen was in an upward trend. The Yen was experiencing a string of rising highs and falling lows. The increasing trend has stopped after hitting the apex of level 164.00. The currency pair oscillates below the most recent high in preparation for a possible collapse. The Yen had a decline in price action following its peak at 164.50.

4-Hour Chart Indicators Reading

The Yen rose to a recent peak after the recent price rally, but it later declined. Following the decline, there are extended candlestick wicks pointing to the most recent high. This suggests that there was significant selling pressure at the most recent peak. It seems unlikely that the pair would move higher because the price bars have reached the overbought region.

General Outlook for EUR/JPY

The EUR/JPY will keep moving sideways as it reaches its top at 164.00.The Yen will rebound if buyers force it above the overhead resistance level of 166.00. The Yen will fall and return to its small range between 160.00 and 164.00 if it is rejected at the recent high. The forex signal will be negative if rejected at the most recent high.
 
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