EUR/JPY Rebounds as It Breaks the Overhead Resistance Level of 158.00

Key Resistance Levels: 160.00, 162.00, 164.00
Key Support Levels: 150.00, 148.00, 146.00

EUR/JPY Price Long-term Trend: Bullish
The EUR/JPY pair has continued its rise as it breaks the overhead resistance level of 158.00 . At the time of writing, the pair has reached a high of level 159.09. The price indicator suggests that the Yen will rise to its previous high.

A retraced candle body on the August 2 rally tested the 61.8% Fibonacci retracement level. The retracement suggests that the EUR/JPY will increase to the 1.618 Fibonacci extension, or level 161.14. At the time of writing, the price is reaching the high of level 160.00 based on price activity.

Daily Chart Indicators Reading:
The Yen is gaining strength as it crosses the Relative Strength Index period 14 level 63. The present bullish trend is entering overbought territory. The price bars are above the moving average lines, indicating that the market is in an uptrend.

If price bars fall below the moving average lines, the uptrend will be terminated.

EUR/JPY Medium-term Trend: Bullish
The 4-hour chart has been drifting sideways since June 27. The Yen is currently trading above the 158.00 resistance level. The Yen is trading above the moving average lines on the lower time frame, indicating that the pair may rise.

4–Hour Chart
The Yen is trading in the market’s overbought zone on the 4-hour chart. That is, the price bars are higher above the moving average lines, indicating an uptrend. The 21-day and 50-day simple moving averages are trending upward, indicating an uptrend.

The Yen is trading above the daily Stochastic threshold of 80. As the currency pair falls, the market has reached overbought territory.

General Outlook for EUR/JPY
The EUR/JPY has entered a new trend as it breaks the overhead resistance level of 158.00. The existence of Doji candlesticks limits upward movement. The Yen will likewise be overbought as it approaches bullish exhaustion.


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