EUR/JPY Pauses Above Level 160.00 as Traders Reach Indecision

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: Bearish

The EUR/JPY pair is moving above the support level of 158.00 and below the moving average lines as traders reach indecision. The 21-day SMA has further rejected the rising surge. The moving average lines, which indicate resistance at level 160.00, and level 158.00 support are the two extremes of the current trading range for the currency pair.

Following the rejection of the recent high, the Yen is now stabilizing above 160.00. On the upside, the Yen will surge to level 166.00 if buyers surpass the 21-day SMA resistance. The currency pair is trading at level 160.71 at the time of writing.

Daily Chart Indicators Reading:

Doji candlesticks depict price bars that are below moving average lines. Doji candlesticks imply that traders are unsure regarding the direction of the currency pairs. Since August 1, the moving average lines have shown a bearish crossover. The negative signal finished above level 158.00.

EUR/JPY Medium-term Trend: Ranging

On the 4-hour chart, the currency pair is trending horizontally. The currency pair is dominated by Doji candlesticks, resulting in delayed price movement. The price movement has stayed stationary above the present support level of 158.00. The yen may fall further as it meets rejection at the moving average lines.

4-hour Chart Indicators Reading  

Following the recent price rebound, the price bars have surged above the moving average lines. The 21- and 50-day SMAs are sloping northward, indicating an uptrend. The price movement has been dominated by Doji candlesticks, delaying the bullish trend.

General Outlook for EUR/JPY

The EUR/JPY is consolidating above 160.00 but remains below the moving average lines as traders reach indecision. The price bars are near the moving average lines, suggesting that the yen could break above them. A break above the moving average lines will indicate the continuation of the bullish trend. Meanwhile, the forex signal remains range-bound, consolidating above the present support.

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