The EUR/JPY Declines to Its Range above 161.00

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 exchange rate declines to its range above 161.00 after hitting the resistance level at 165.00. Since August 5, 2024, the Yen has been moving in a band between 156.00 and 166.00. The 21-day SMA kept the currency pair from falling below the moving average lines. The falling Yen has been stuck between the lines of the moving average.

On the downside, the Yen will drop and retrace its previous bottom around 156.00 if the bearish trend breaks the 21-day SMA support. Similarly, the pair would top at level 166.00 if the bulls break through the 50-day SMA barrier. The Yen is now trading at level 162.51 as of this writing. 

Daily Chart Indicators Reading:

The currency pair’s value has dropped between the moving average lines. The Yen will start to trend when the moving average lines are breached. The Yen will spend a few days trapped between the moving average lines in the interim. The moving average lines have remained horizontal due to the sideways trend.

EUR/JPY Medium-term Trend: Bearish

The Yen is declining below the moving average lines on the 4-hour chart. The Yen retreated after dropping below level 161.00. The selling pressure has subsided as a result of the currency’s upward adjustment. The upward correction is likely to be resisted at the moving average lines. The pair will have to make a range-bound move below the moving average lines and above the present support at level 161.00.

4-Hour Chart Indicators Reading

The Yen has been falling as a result of a bearish crossover between the moving average lines. A bearish indication is shown by the 21-day SMA being below the 50-day SMA. A declining trend is indicated by the moving average lines’ downward slope. However, the selling pressure has achieved bearish weariness above the current level of 161.00.

General Outlook for EUR/JPY

The EUR/JPY pair will continue its sideways trend as it declines to its range above 161.00. The price movement on the daily chart has been constrained by the lines of the moving average. The forex signal has remained range-bound since the currency pair is trapped between the moving average lines.  

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