EUR/JPY Retraces above the Moving Averages, May Revisit Level 140.00 High

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

EUR/JPY Price Long-term Trend: Bullish
EUR/JPY pair is in an uptrend as it may revisit level 140.00 high . The currency pair has retraced above the moving averages after facing rejection at level 140.00 resistance zone. On the upside, the pair will resume upward if price finds support above the moving averages. The Yen will rise to retest level of 140.00 high. On the downside, if the bears break below the moving averages, the downtrend will resume.

Daily Chart Indicators Reading:
EUR/JPY is at level 58 of the Relative Strength Index for period 14. The pair was earlier in the overbought region of the market. Sellers have emerged to push prices downward. The price bars are still above the moving averages indicating a further upward movement of the pair. The 21-day SMA and 50-day SMA are sloping upward indicating the uptrend.

EUR/JPY Medium-term Trend: Bearish
On the 4- hour chart, the currency pair is in a downtrend. In the previous uptrend, the bulls retested level 140.00 resistance level twice before the downward move. Meanwhile, on April 22 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that EUR/JPY will fall to level 1.618 Fibonacci extension or level 137.28. From the price action, the market has declined beyond the 1.618 Fibonacci extensions as the bulls bought the dips.

4-Hour Chart Indicators Reading
EUR/JPY is below the 20% range of the daily stochastic. The pair has fallen to the oversold region of the market. The downtrend has reached bearish exhaustion. The 21-day line and the 50-day line moving averages are sloping upward indicating the uptrend.


General Outlook for EUR/JPY
EUR/JPY is in an uptrend as it may revisit level 140.00 high. The current uptrend is facing rejection at the 140 .00 resistance zone. The Yen is in a downward move as price breaks below the moving averages.


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