The EUR/JPY Continues Its Slide to Level 169.20

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 declined below the moving average lines as it slides to level 169.20. The bearish momentum broke below the moving average lines but was halted twice by the 50-day SMA. The currency pair has been stuck between the moving average lines since July 17.

According to the price indication, the decline will continue to the downside. On the downside, if the bears breach the 50-day SMA, the Yen will fall to a low of 169.20. Meanwhile, the EUR/JPY exchange rate is currently trading at 170.95.

Daily Chart Indicators Reading:
The drop has slowed as the currency pair has become caught between the moving average lines. The Yen trades above the 50-day SMA support but below the 21-day SMA resistance level. When the bears breach the 50-day SMA support level, selling pressure will resume.

EUR/JPY Medium-term Trend: Bearish
On the 4-hour chart, the Yen has fallen below the moving average lines. It trades above level 170.00 support level following a rejection at the 21-day SMA. The Yen will decline if it loses its current support level of 170.00. During the July 9 downturn, a retraced candle body reached the 61.8% Fibonacci retracement level.

The retracement indicates that the market will fall even deeper to the Fibonacci extension level of 1.618, or 169.20.

4-hour Chart Indicators Reading  
The moving average lines are trending downward, indicating a downturn. The 21-day SMA serves as the price bars’ resistance line. The Yen will fall each time it confronts rejection at the 21-day SMA. A break above the moving average lines indicates that the Yen is beginning to rebound from its downtrend.

General Outlook for EUR/JPY
The EUR/JPY has been in decline as it slides to level 169.20 . The Yen is trading close to level 170.00 and the 21-day SMA. The Yen will fall once the existing support is breached. The forex signal is currently bearish as the Yen faces additional rejection.

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