EUR/JPY Retreats Toward 182.00

EUR/JPY Significant Levels

Resistance Levels: 183.00, 184.00, 185.00

Support Levels: 182.00, 181.00, 180.00

EUR/JPY Long-Term Trend: Bearish

The EUR/JPY market has not been at its best recently. The pair has begun the previously anticipated downward retracement and has remained in negative territory for some time. However, price action continues to hold above the key psychological level at 182.00.

Meanwhile, the euro side of the market appears relatively stable, with only modest speculation surrounding it. As a result, the Japanese yen currently seems to be the stronger currency, even as it continues to lose ground against the US dollar.

Daily Chart Indicator Readings

On the EUR/JPY daily chart, price action has remained in the red for five consecutive sessions. However, the corresponding candles reflect only modest price declines. The latest candle is trading below the 9-day Exponential Moving Average (EMA) and has brought the pair to trade around the 183.72 level.

Meanwhile, the Stochastic Relative Strength Index (SRSI) lines have already dropped into the oversold region despite the relatively moderate price decline. Consequently, price action may be approaching a potential rebound in the near term.

EUR/JPY Medium-Term Trend: Bearish

On the 4-hour chart, price action shows signs that the downward retracement may be slowing. The bearish move was strongest in the previous session.

Although the ongoing session remains below the 9-day EMA curve, it appears green and highly compressed, suggesting a pause in bearish momentum. This has brought the pair to trade near a support level last tested eight sessions ago.

4-Hour Chart Indicator Readings

The 9-day EMA curve on the 4-hour EUR/JPY chart continues to act as a price ceiling. The ongoing session is trading at a notable distance below this moving average.

Meanwhile, the SRSI lines are falling sharply toward the oversold region. This movement appears to be largely driven by the steep decline seen in the previous session, as the current session shows signs of a temporary halt in bearish progress.

General Outlook for EUR/JPY

Overall, the market appears to be nearing a potential rebound. This outlook is supported by the fact that on the daily chart, price action has declined only moderately, while the SRSI lines have moved much more aggressively and are now deep within the oversold region.

Similarly, on the 4-hour chart, price action appears to be encountering resistance to further downside. Although weak, the most recent candle is green, suggesting a possible interruption of the steep downward retracement.

That said, the EUR/JPY market remains below the 9-day EMA, and the SRSI lines continue to point steeply toward oversold territory. Consequently, while the broader trend remains bearish, traders may anticipate a corrective rebound toward the 183.50 price level, given the oversold conditions on the daily chart.

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