The EUR/JPY Dips below the 178.00 Level Barrier

EUR/JPY Significant Levels

Resistance Levels: 172.00, 174.00, and 176.00
Support Levels: 164.00, 162.00, and 160.00

EUR/JPY Price Long-term Trend: Bullish

The EUR/JPY exchange rate has twice reached its peak, but dips below the 178.00 level barrier. On October 9, buyers drove the price to a high of $177.93, but the Yen declined and found support above the 21-day SMA. On October 30, the currency surged to a level of 178.82, but was halted at its recent high. The currency pair is slipping towards the 21-day SMA.

On the downside, if the 21-day SMA support holds, the Yen will continue its range-bound move above the 21-day SMA support but below the resistance at the level of 178.00. On the other hand, the Yen will resume its bearish ascent if the 21-day SMA support is breached. Today, the currency pair is trading at 177.50.

Daily Chart Indicators Reading

The price bars are higher than the moving average lines. The currency price bounces whenever it retests the 21-day SMA support. Price movement has been constrained due to the presence of Doji candlesticks. If the 21-day SMA support is breached, the currency pair will resume its downward trend. If the 21-day SMA support holds, the Yen will trade in a bullish trend.

EUR/JPY Medium-term Trend: Bearish

The EUR/JPY is declining between the moving average lines. The Yen is falling after being rebuffed twice at its peak of 178.50. For the past 24 hours, the Yen has fluctuated between the moving average lines. If the 50-day SMA support is broken, the Yen will fall to the next support level, 176.66. The pair will resume its upward trend once it breaks above the 21-day SMA.

4-hour Chart Indicators Reading

Although the moving average lines are on an upward slope, the price bars are located between them. The Yen will trend if either the 21-day SMA barrier or the 50-day SMA support is broken. Currently, the bears are attempting to breach the 50-day SMA support, but the bulls have bought the dips.

General Outlook for EUR/JPY

The EUR/JPY pair is trading sideways, dipping below the 178.00 level barrier. Since October 9, the currency pair has traded above 175.50 but below 178.00. On the downside, the Yen is falling as bears break the 50-day SMA support on the 4-hour chart. The forex signal will be negative if the bears break below the 21-day SMA support on the daily chart.

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