EUR/JPY Remains Within Its Range Despite Its Decline 

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: Ranging

The EUR/JPY pair remains within its range after hitting the 21-day SMA barrier. The value of the Yen has been rising since it fell to 156.00. The bullish momentum was repelled by the moving average lines, resulting in a range-bound move. The currency pair now fluctuates between level 156.00 and below the moving average lines.

Today, the Yen is dropping into the lower price range at level 156.00.Since August 5, 2024, the bears have failed to breach level 156.00. The Yen has been range-bound between levels 156.00 and 166.00 in the past. The bearish trend zone is now the focus of the range-bound move. On the downside, the Yen will decline and will revisit the previous level at level 156.00. 

Daily Chart Indicators Reading:

The horizontal moving average lines are above the price bars. The Yen has dropped and made two trips back to the lower price range. The decrease is indicated by the 21-day SMA being below the 50-day SMA. As long as the range-bound levels are broken, the horizontal trend will continue.

EUR/JPY Medium-term Trend: Bearish

The Yen has fallen after hitting the 4-hour chart’s resistance at 161.00.The price is stuck in the middle after falling between the moving average lines. When the bears break through the 50-day SMA, the selling pressure will return. However, the upward correction will resume once the bulls breach the 21-day SMA barrier.

4-Hour Chart Indicators Reading

The price is in the space between the moving average lines, which are sloping south. Doji candlesticks are used to describe the price activity since they slow the price movement.

General Outlook for EUR/JPY

The Yen is currently trading within its range between levels 156.00 and 161.00 on the 4-hour chart. The resistance at level 161.00 has already twice resisted the rising movements. Until the upward trend is determined, the Yen is compelled to stay in its range. The upward trend resumes when the price crosses above the moving average lines. The forex signal is range-bound, but the Yen remains inside its constrained range.

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