EUR/JPY Risks Decline as It Faces the 164.00 Barrier

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 currency pair has surged above its moving average lines as it faces the 164.00 barrier, reaching a high of 164.63. The pair is gaining while maintaining a sideways trend. The pair is in a range that is between levels 156.00 and 166.00. The bulls have been unable to hold the price above the overhead resistance at level 166.00. Today, the Yen faces an initial obstacle at the high of 164.00.

On the upside, the Yen will restart its upside momentum once it breaks above the overhead resistance at $166.00. On the other hand, the sideways movement will begin after the Yen is rejected at the overhead resistance.

Daily Chart Indicators Reading:

The Yen increases as the price bars stay above the moving average lines. However, the bullish impetus has peaked, and the Yen may fall from its recent highs. The sideways trend has kept the moving average lines horizontal.

EUR/JPY Medium-term Trend: Bullish

On the 4-hour chart, the Yen continued its upward trend, reaching the 165.00 barrier level. On November 14, the currency pair peaked at 165.00 and was rebuffed. Today, the Yen is trading above the 21-day SMA support but below the barrier at 165.00. The bullish momentum will continue as long as the 21-day SMA support holds.

4-Hour Chart Indicators Reading

Since December 3, the Yen has been in an uptrend, with price bars above the upward-sloping moving average lines. The 21-day simple moving average serves as the price bars’ support line. If the support line is breached, the upswing may end. The currency pair has been slowly rising due to the Doji candlestick’s presence.

 General Outlook for EUR/JPY

The EUR/JPY pair may be rejected as it faces the 164.00 barrier. A rejection of the recent high will prompt the Yen to return to its range of 156.00 to 166.00. On the 4-hour chart, the pair is slightly retracing towards the 21-day SMA. If the Yen breaks above the 21-day SMA support level, it will rise again. A break below it will result in further selling pressure. If the price is rejected at its recent high, it will remain range-bound.
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