EUR/JPY Retraces above 163.00 as It Continues Its Bullish Rise

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: Bullish
EUR/JPY is on an uptrend, with higher highs and higher lows as it continues its bullish rise. The currency pair is approaching the expected price level of the 1.618 Fibonacci extension, or 166.37. Currently, it is forming a higher low above the 21-day SMA.

The Yen will increase if it remains above the 21-day SMA support. This will cause it to rise above level 166.00. The positive momentum will continue to the high of 166.37. However, the uptrend might be broken if the price falls below the moving average lines and the bearish momentum continues.

The EUR/JPY will plummet to a low of 158.50.

Daily Chart Indicators Reading:
The price bars are above the upward-sloping moving average lines. The 21-day SMA serves as the support line for the moving average lines. The Yen will rise as long as price bars remain above the 21-day SMA. The bullish crossing suggests that the Yen will continue to rise. However, the Yen risk decreases when the market approaches overbought territory.

EUR/JPY Medium-term Trend: Bearish
On the four-hour chart, the EUR/JPY is falling below the moving average lines. According to the price signal, the Yen will fall further to the 1.618 Fibonacci extension, or level 162.14. Currently, the pair has reached level 163.17 but has since corrected upward.

4-hour Chart Indicators Reading
The price bars fall below the moving average lines. On the lower period, the Yen has formed a bearish crossover. That is, the 21-day SMA crosses below the 50-day SMA, indicating a drop in the Yen. The moving average lines are sliding downward, signaling a decrease.

General Outlook for EUR/JPY
The Yen is falling but remains above the 21-day SMA as it continues its bullish rise. The bullish ascent will resume if the fall stalls above the 21-day SMA. The Yen will rise to its target price of 166.37. The forex signal will be negative if the currency price falls below the moving average lines.

Meanwhile, the Yen has remained bullish, rising above the moving average lines.

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