The EUR/JPY Loses Ground as It Risks Falling to 157.61

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 pauses above 158.58 as it risks falling to 157.61. The bearish momentum was confined above the 50-day SMA even though it broke below the moving average lines. The price suggestion, however, suggests that the Yen could continue to weaken. 

For instance, if the bears breach the 50-day SMA support, the Yen will depreciate to 157.00. The currency pair will peak at level 164.00 if the bulls overcome the bears and breach the 21-day SMA. The Yen is now trading at level 160.32 as of this writing.

Daily Chart Indicators Reading:

The 50-day SMA support and the 21-day SMA resistance enclose the declining Yen. The currency pair has been encircled by the horizontal moving average lines. This points to a possible sideways trend for a few days. The Yen will trend when the moving average’s lines are broken.

EUR/JPY Medium-term Trend: Ranging

The currency pair has dropped to a low of 159.57, below the moving average lines. However, the price index indicates that the Yen has been losing ground. A retraced candle body tested the 61.8% Fibonacci retracement level during the market decline on April 2.

According to the correction, the Yen will drop to level 157.61, or the Fibonacci extension of 1.618. Meanwhile, as of this writing, the Yen has dropped to a low of 160.29.

4-hour Chart Indicators Reading

The declining trend is indicated by the horizontal moving average lines’ downward slope. A lengthy candlestick tail is pointing in the direction of the existing support. It suggests that there is significant buying pressure at lower price points.

General Outlook for EUR/JPY

The EUR/JPY pair has resumed its downward trend as it risks falling to 157.61. On the downside, the Yen will keep losing ground if the bears break through the present support at 160.00. It is anticipated that the currency pair will reach the Fibonacci extension level of 1.618. According to the price indication, the forex signal is currently bearish.


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