EURJPY Bearish Trend Continues in the Short to Medium Term

EURJPY Price Analysis – June 11

The EURJPY currency pair is driven by downside pressure during the European session into the American session at the close of the week. During Friday’s trading, the exchange rate declined by 57 pips at the time of this post. The pair may continue to lose ground versus the Japanese Yen in the coming trading session.

Key Levels
Resistance Levels: 135.50, 134.50, 133.50
Support Levels: 132.50, 131.40, 130.68
EURJPY Long term Trend: Ranging
On the daily chart, the EURJPY broke below the moving averages 5 and 13, extending the decline from the 32-month high of 134.12 level to the 132.84 level. The RSI indicator is still hovering around 50. A move down might challenge the ascending trendline at 132.00 which is just beneath the 132.50 support level.

If the price rises over the moving average 5 and 13, immediate resistance may be found near the 32-month high of 134.12 level. A stronger uptrend might push the price back to the January 2018 high of 137.50. Since March 24, the EURJPY has continued in an uptrend. If the price falls below the ascending trendline, this bias may move to neutral.
EURJPY Short term Trend: Ranging
The 4-hour chart is pointing to a possible ranging continuation. Should the price breach the prior lows, the following trend depicts a negative bias. During the following trading session, negative traders may run into a support line at May 24 support of 132.50.

On the upside, a sustained break of the 100 percent forecast from 129.56 at 134.12 to 119.32 at 131.00 will extend the uptrend from 119.32 to 137.50 long-term resistance next. However, a firm break of 132.50 on the downside will signal short-term topping and a deeper pullback.

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