EUR/JPY Struggles below 129.25, May Reverse at Level 129.38

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 the bearish trend zone but may reverse at level 129.38. The pair is stuck below the moving averages. The upward move is doubtful as the pair approaches the overbought region of the market. The uptrend will resume and the EURO will be out of downward correction if price breaks above the moving averages. Conversely, the EUR/JPY will decline or be in a range-bound move if it faces rejection at the recent high.

Daily Chart Indicators Reading:
EUR/JPY is at level 46 of the Relative Strength Index for period 14. Despite the upward move, the pair is below the centerline 50. The 21-day SMA and 50-day SMA are sloping horizontally indicating the sideways move.

EUR/JPY Medium-term Trend: Bearish
On the 1- hour chart, the EUR/JPY is in an upward move as price breaks above the moving averages. Meanwhile, on January 31 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that EUR/JPY will rise to level 1.618 Fibonacci extension or level 129.38.

1-Hour Chart Indicators Reading
EUR/JPY is above the 70% range of the daily stochastic. The pair is in a bullish momentum and it is approaching the overbought region. The price bars are above the moving averages which indicate further upward move.


General Outlook for EUR/JPY
The currency pair is approaching an overbought region of the market. The current uptrend may retrace to the downside. The market will decline to the low of level 129.38

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