The EUR/JPY Bounces as It Recovers Above Level 154.41

EUR/JPY Significant Levels

Resistance Levels: 164.00, 166.00, and 168.00
Support Levels: 158.00, 156.00 and 154.00

EUR/JPY Price Long-term Trend: Bearish

The EUR/JPY pair has hit bearish exhaustion as it recovers above level 154.41. On August 5, bulls bought the dips and resumed their upward correction. The upward corrective encountered resistance at the 21-day SMA. On the upside, if the 21-day SMA resistance is broken, the currency pair will rise to its high point of 168.00 or the 50-day SMA barrier.

Furthermore, if the price breaks above the 50-day SMA barrier, the uptrend will resume. The Yen will begin its bullish trend. The Yen will increase to a high of 172.00. It is currently retracing after reaching resistance at the 21-day SMA.

Meanwhile, the currency pair will trade above the present support at 154.00 but below the 21-day SMA high. Once the barriers are broken, the pair will trend.

Daily Chart Indicators Reading:

Despite the breach of the 21-day SMA resistance, the price bars stayed below the lines of the moving averages. Furthermore, the Yen exhibits a bearish crossing as the 21-day SMA crosses below the 50-day SMA. This implies a bearish signal, which has ended on August 5.

EUR/JPY Medium-term Trend: Bullish

On the 4-hour chart, the currency pair has returned above the moving averages. The Yen’s decline ended on August 5 when it hit a level of 154.39. Today, the Yen has reached a high of 163.89. However, the bullish momentum has paused at a high of 164.00. The Yen has retraced but regained support above the moving averages.

The pair will increase again because it is above the moving average lines.

4-hour Chart Indicators Reading  

Following the current price bounce, the price bars have risen above the moving average lines. The 21- and 50-day SMAs are sloping northward, indicating an upward trend. The price movement has been dominated by Doji candlesticks, slowing the bullish momentum.

General Outlook for EUR/JPY

The EUR/JPY is recovering from its fall as it recovers above level 154.41. The currency pair is trading in a range following the end of the rally. The pair have been compelled to stay inside a range. The Yen moves between levels 156.00 and 164.00. Currently, the Yen is retracing toward the middle of the price range. The forex signal is positive, indicating that the currency pair is recovering from its downturn.


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