EUR/JPY Recovers Above the Level of 170.00

EUR/JPY Significant Levels

Resistance Levels: 172.00, 174.00, and 176.00
Support Levels: 164.00, 162.00, and 160.00

EUR/JPY Price Long-term Trend: Bearish

The EUR/JPY pair rises to a high of 173.90 but falls below the level of 170.00. Buyers were unable to sustain the trend above the 174.00 level, reversing the positive momentum. The bears pulled the pair below the 21-day SMA support, ending the bullish trend. The euro is expected to fall to the 50-day SMA low (168.90) after breaking below the 21-day SMA support level. Currently, the Yen is limited between the moving average lines. The currency pair is now trading at 173.83

Daily Chart Indicators Reading

The Yen is now trading below the 21-day SMA barrier but above the 50-day SMA support. The currency pair will resume a bullish trend if it breaks above the 21-day SMA barrier. However, the selling pressure will persist when the bears breach below the 50-day SMA support. In the meantime, the currency pair is trapped in a range.

EUR/JPY Medium-term Trend: Bearish

On the 4-hour chart, the Yen has dropped below the moving average lines. Yen’s recovery has caused the decline to pause above the 170.00 mark. The pair dipped for the second time, getting closer to the current support level, as the moving average lines thwarted its upward rise. The Yen will trade sideways if the current support level of 170.00 holds.

4-hour Chart Indicators Reading

The 50-day and 21-day SMAs are both declining as a result of the most recent decline. The 21-day SMA has fallen below the 50-day SMA, signaling a bearish trend. Doji candlesticks, or indecisive candlesticks, have developed, indicating a likely range-bound move for the currency pair.

General Outlook for EUR/JPY

The EUR/JPY is falling as the Yen loses its 21-day SMA support but recovers above the level of 170.00. The currency pair has declined but remains caught between the moving average lines. On the 4-hour chart, the currency pair has stopped above the level of 170.00.00. This will cause it to begin a sideways move above its current support. The forex signal is nrgative as the Yen loses its 21-day SMA support.

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