EUR/JPY Slumps to Level 130.32 Low, May Revisit Resistance at 131.50

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

EUR/JPY Price Long-term Trend: Bearish
EUR/JPY pair is in a downward move but may revisit resistance at 131.50. The uptrend of January 5 has been terminated at the high of level 131.50. Today, the currency price has broken below the 50-day SMA and it is approaching the 21-day SMA. The current selling pressure will be accelerated if price breaks below the 21-day SMA. On the other hand, if EUR/JPY finds support above 21-day SMA, the currency pair will resume a range-bound move between moving averages.

Daily Chart Indicators Reading:
The market is at level 54 of the Relative Strength Index period 14. The pair is in the uptrend zone but it is retracing to the downside. The currency price is now between the 21-day line SMA and the 50-day line SMA indicating a possible range bound zone. The 21-day SMA and the 50-day SMA are sloping upward indicating the previous uptrend.

EUR/JPY Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downward move. The previous uptrend was terminated at 131.50 as the market reached an overbought. The pair declined but made an upward correction. EUR/JPY resumes selling pressure after facing another rejection at the recent high. On January 6 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The EURO is likely to fall to level 2.618 Fibonacci extensions or level 129.02.

4-hour Chart Indicators Reading
The EUR/JPY pair is below the 20% range of the daily stochastic. The pair has fallen to an oversold region of the market. Buyers are expected to emerge in the oversold region. The selling pressure is likely to end or subside.

General Outlook for EUR/JPY
EUR/JPY is in a downward move but may revisit resistance at 131.50 . Buyers have earlier failed to keep the price above level 131.50. The current retracement has retested the low of 130.00 as the pair reached the oversold region. The uptrend will resume if the current support holds.

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