EUR/JPY Risks Falling Below Its Historical Price of 173.00

EUR/JPY Significant Levels

Resistance Levels: 172.00, 174.00, and 176.00
Support Levels: 164.00, 162.00, and 160.00

EUR/JPY Price Long-term Trend: Bullish

The EUR/JPY exchange rate hit its all-time high of 173.00. Similarly, on July 8, 2024, the currency pair rose to a high of 173.68 before being repulsed. The moving average lines were breached by the Yen. The currency has hit an overbought market level, forcing it to plummet.

For the past week, the bullish trend has stalled as the Yen bounced above the moving average lines and below the resistance level at 173.00. The pair’s further upward movement is doubtful as the market approaches overbought territory. The price must drop below the 21-day SMA support in order for selling pressure to resume. The pair will drop to 167.63. Meanwhile, the Yen is trading at 177.18 at the time of writing.

Daily Chart Indicators Reading:

The price bars are consolidating while staying above the upward-sloping moving average lines. The Doji candlesticks in the chart indicate that traders are unsure of the market’s direction. The market’s overbought threshold has been reached by the Yen. There is a possibility of a decrease.

EUR/JPY Medium-term Trend: Ranging

On the 4-hour chart, the Yen is trading in a sideways pattern between 171.00 and 173.00. The use of Doji candlesticks has kept the price movement consistent. On the downside, if the price falls below the 21-day SMA support level, the Yen will resume selling pressure. The upward movement will resume above the 173.00 barrier.

4-hour Chart Indicators Reading

 The horizontal moving average lines are above the price bars. A sideways trend has been indicated by the Yen price’s oscillations above and below the horizontal moving average lines. The price action has been characterized by Doji candlesticks, which slow price movement.

General Outlook for EUR/JPY

The EUR/JPY is trading below its historical price of 173.00. The currency pair has stalled at its historical price of 173.00. The Yen is trading sideways in anticipation of a possible trend. However, the Yen will fall if sellers emerge in the market’s overbought zone. Meanwhile, the forex signal is range-bound, as the Yen remains stuck at its recent high.

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