EUR/JPY Reaches Overbought Region as It Hovers above Level 144.00

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 is in an uptrend as it hovers above level 144.00. The upward move has been stalled as the pair trades in the overbought region of the market. Since September 8, the currency pair has been trading below level 145.00 resistance zone. Since June 8, buyers have not been able to keep the currency pair above level 144.00. The Yen would decline to the previous low after each retest at the recent high.

Daily Chart Indicators Reading:
The currency pair is at level 69 of the Relative Strength Index period 14. It indicates that the pair has reached the overbought region at level 74. Sellers will emerge in the overbought region of the market. The price bars are above the moving average lines indicating a further upward move which is unlikely.

EUR/JPY Medium-term Trend: Bullish
On the weekly chart, the Yen is still trading in the bullish trend zone. The bullish momentum has subsided as the pair fluctuates above the moving average lines. On a weekly chart, a retraced candle body tested the 78.6% Fibonacci retracement on July 25. The retracement suggests that EUR/JPY will rise to level 1.272 Fibonacci extension or level 148.41. From the price action, the Yen has reached the high of level 145.63 and pulled back.

Weekly Chart Indicators Reading
The pair is above the 80% range of the daily stochastic. The Yen has reached the overbought region. Sellers will emerge in the overbought region to push prices down.

General Outlook for EUR/JPY
The Yen has reached bullish exhaustion as it hovers above level 144.00. Further upward move is unlikely as the currency pair trades in the overbought region of the market.


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