The EUR/JPY Continues to Trade In a Range Below 162.00

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: Ranging

The EUR/JPY pair has risen but continues to trade in a range below 162.00. Since August 12, the bulls have been unable to breach above level 164.00. At the most recent high, the bullish momentum was twice rebuffed before continuing its range-bound trajectory. The currency pair is trapped between the moving average lines on the weekly chart, suggesting that it will continue to move in a range-bound manner.

Weekly Chart Indicators Reading:

The Yen has recovered above the 21-day SMA support, although below the 50-day SMA high. The sideways trend is indicated by the horizontal moving average lines. The price bars are currently within the moving average lines after being below them.

EUR/JPY Medium-term Trend: Ranging

Since breaking above the moving average lines on April 7, the Yen has been rising on the daily chart. The 21-day SMA or the barrier at level 162.00 has halted the upward trend. In other words, the currency pair trades above the 160.00 support and below the 162.00 barrier. The Yen will either rise or decrease when the present bars are broken.

Daily Chart Indicators Reading

The currency pair became stuck at the 21-day SMA barrier, causing it to become trapped. The 21-day SMA is above the 50-day SMA, despite the moving average lines being horizontal. Strong selling pressure at the most recent high is indicated by the extended candlestick wicks.

General Outlook for EUR/JPY

The EUR/JPY exchange rate has increased but continues to trade in a range below 162.00. The price movement has been within its present range for the past week since April 3. The bulls are still having trouble moving the Yen above the 162.00 barrier or the 21-day SMA. Meanwhile, due to the sideways trend, the forex signal is range-bound.

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