EUR/JPY Reaches an Overbought Region at Level 132.16, Downtrend is Likely

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

EUR/JPY Price Long-term Trend: Bullish
EUR/JPY pair  has reached the overbought region of the market but downtrend is Likely. On February 7, the currency pair rallied to a high of level 132.16. The upward move could not continue as the market reached an overbought region. Today, the currency pair is retracing after rejection from the recent high. The market is likely to decline to the low of level 130.61. The Yen will resume upward if the support at level 130.61 holds. Otherwise, the downtrend will extend to level 130.00 low.

Daily Chart Indicators Reading:
EUR/JPY is at level 66 of the Relative Strength Index for period 14. The pair is trading in the uptrend zone but it is retracing from the overbought region of the market. The 21-day SMA and 50-day SMA are sloping horizontally indicating the sideways move.

EUR/JPY Medium-term Trend: Bullish
On the 4- hour chart, the EUR/JPY is in a smooth uptrend. The Yen rose and broke above the previous overhead resistance to a high of level 132.16. The market is retracing to support above level 131.57.

4-Hour Chart Indicators Reading
EUR/JPY is above the 80% range of the daily stochastic. Since January 30, the pair has been trading in an overbought region of the market. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The price bars are above the moving averages which indicate further upward move.


General Outlook for EUR/JPY
EUR/JPY is trading in the overbought region of the market but downtrend is Likely. Sellers have emerged to push prices down. Presently, the bears are struggling to break below 131.70 support


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