EUR/JPY Resumes Selling Pressure as It Faces Rejection at 137.88

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

EUR/JPY Price Long-term Trend: Bearish
EUR/JPY pair is in a downtrend as it faces rejection at 137.88. Today, the bulls are attempting to break above the 21-day line SMA. The Yen will regain bullish momentum if the price breaks above the moving average lines. Nonetheless, the selling pressure will persist if the pair turn away from the 21-day line SMA.

Daily Chart Indicators Reading:
The Yen is at level 50 of the Relative Strength Index for period 14. This implies that there is a balance between supply and demand. The price bars are below the moving average lines indicating a further decline of the pair. The 21-day line SMA and the 50-day line SMA are sloping southward indicating the downtrend.

EUR/JPY Medium-term Trend: Bullish
On the 1- hour chart, the Yen is trading in the bullish trend zone On the August 16 uptrend, a retraced candle body tested the 61.8% Fibonacci retrenchment. The retracement suggests that EURJPY will rise to level 1.618 Fibonacci extension or level 137.81.

4-Hour Chart Indicators Reading
The pair is above the 80% range of the daily stochastic. It indicates that the market has reached the overbought region. The price bars are above the 50-day line SMA and the 21-day line SMA indicating a possible upward move

General Outlook for EUR/JPY
EUR/JPY is in a downtrend as it faces rejection at 137.88. Presently, the Yen is trading in the overbought region of the market. Sellers will emerge in the overbought region to push prices down.


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