The EUR/JPY Declines as It Returns to Level 156.00

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 is now trading in a narrow range between levels 160.00 and 164.00 as it returns to level 156.00. The upward moves have thrice been repelled by the resistance at level 164.00. On January 31, the bears plunged the Yen to the low of level 160.00 and pulled back. The currency pair is correcting upward to revisit the previous highs. The Yen is facing the barrier at the 50-day moving average line.

It is trading above level 160.00 and below the moving average lines. On the downside, the Yen will further depreciate if the bears breach below level 160.00. The Yen will fall to a level of 156.36. 

Daily Chart Indicators Reading:

The price bars are above level 160.00 but below the moving average lines. Since the January 16 price slump, the Yen has been trading in a limited range. When the Yen is in the bear trend zone, it could continue to decrease. The present sideways trend is indicated by the horizontal moving average lines.

EUR/JPY Medium-term Trend: Ranging

The Yen is trending sideways on the 4-hour chart. The range of values for the currency pair is 160.00 to 164.00. The currency pair has dropped above 160.00 and is now correcting higher. The 21-day SMA has rejected the Yen as it fluctuates below the moving average lines. The Yen will resume its upward trajectory once it breaks above the moving average lines.

4-Hour Chart Indicators Reading

The moving average lines are horizontal but the 21-day SMA is below the 50-day SMA indicating the decline of the Yen. It indicates a further decline to the downside but selling pressure has subsided. The price bars fluctuate below and above the moving average lines.

General Outlook for EUR/JPY

The EUR/JPY resumes its sideways trend as it returns to level 156.00. The Yen is trading below the moving average lines but above 160.00. On the downside, it will drop to level 156.00 if the bears break through the present support at level 160.00. Now, the pair will be restricted to levels 156.00 to 164.00. The forex signal is range-bound as it falls to level 160.00.

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