The EUR/JPY Depreciates as It Faces Rejection at 164.00

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 falls below the lines of the moving average as it faces rejection at 164.00. Although the Yen fell as low as 161.08, the bulls purchased the dips. The pair has surged above the moving average lines at level 164.27. The Yen was pulled back from the previous high as it started to oscillate above the 21-day SMA and the resistance level at 164.00. A price breakdown or recovery is likely due to the Yen’s trading in a restricted range. The Yen is now trading at 163.43 as of this writing.

Daily Chart Indicators Reading:

The price bars are back above the moving average lines, indicating that the Yen has resumed its bullish rise. The 50-day and 21-day SMAs are both horizontal but close to the overhead resistance at level 164.00.The extended candlestick tail briefly broke through the 21-day SMA support on May 30 before retreating. Strong purchasing pressure is currently holding the Yen at its lowest level.

EUR/JPY Medium-term Trend: Bearish

The Yen is losing value between the lines of the moving average. The pair is above level 162.00 while trading below level 163.55. The bullish momentum dipped sharply below level 163.55 on May 30, and the currency pair will restart a bullish trend on the rise when it recovers and breaks the barrier at 163.55 and 164.00.

4-Hour Chart Indicators Reading

The blue line is above the red line, indicating an upward slope for both the 21-day and 50-day SMAs. Since the Yen is stuck between the moving average lines, it is unlikely that the currency will rise or fall. The Yen is below the 21-day SMA barrier but above the 50-day SMA support.

General Outlook for EUR/JPY

The present price of the Yen is contained inside a narrow range as it faces rejection at 164.00. The price movement has remained constant because of the Yen’s narrow trading range. The pair is trapped between the 50-day SMA support and the 21-day SMA barrier on the 4-hour chart. The forex signal is range-bound below the 164.00 overhead resistance level.

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