EUR/JPY Trades in a Range but Faces Resistance at Level 142.00

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

EUR/JPY Price Long-term Trend: Bullish
The EUR/JPY pair is still trading in the bullish trend zone but faces resistance at level 142.00. When the moving average lines are broken, the pair will trend. If buyers are successful in keeping the price above the 50-day SMA, the pair will rise to a high of level 146.00. The Yen will decline and resume its range-bound movement if the SMA on the 50-day line is challenged. More selling pressure will be applied if the price crosses the 21-day line.

Daily Chart Indicators Reading:
For period 14, the pair is at level 53 on the Relative Strength Index. Given that it is in the uptrend zone, the Yen is likely to increase. As long as the price is situated between the moving average lines, the pair will resume its range-bound movement. A drop is indicated by the moving average lines’ downward slope.


EUR/JPY Medium-term Trend: Bullish
On the 4-hour Chart, the Yen is above the moving average line. It has risen to an overbought area and could fall. The current upsurge has caused the market to become overbought. On January 20, a candle body that had reversed its upward trend tested the 78.6% Fibonacci retracement line. The Yen will rise but turn about around level 1.272 of the Fibonacci extension, or level 142.09, according to the retracement.

4-Hour Chart Indicators Reading
The daily stochastic’s level of 80 is above the Yen. Where the pair is trading, the market is overbought. The presence of sellers in the overbought area will cause the Yen to decline. The increasing slope of the moving average lines indicates an uptrend.

General Outlook for EUR/JPY
The price of the EUR/JPY pair is currently overbought as it faces resistance at level 142.00. It will decrease as a result of this, but it will then start to rise again. Additionally, the Yen will be forced to move in a range for a few days. The upward movement has been impeded at level 142.00 since December 28, 2022.

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