The EUR/JPY Maintains a Range-Bound Trend above 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 continued its range-bound trend above 156.00. Since January 16, the currency pair has been trading inside a limited range between 160.00 and 164.00. The negative trend retested level 160.00 after breaking below it on February 3 and then continued to drop. The bulls purchased the dip even though the Yen dropped to a low of 155.67.

The exchange rate is increasing. The pair is again back within its range of 160.00 to 164.00. Since August 5, 2024, the Yen has been ranging between 156.00 and 164.00. It seems likely that the current upward trend will continue into the higher price range. The Yen is now trading at 156.71 at the time of writing. 

Daily Chart Indicators Reading:

The 21-day SMA is below the 50-day SMA, suggesting a bearish crossover, even though the moving average lines remain horizontal. It suggests that the current pair will continue to decrease. The value of the Yen has dropped and hovered above 155.00. The lower price range has started to move between levels 156.00 and 164.00.

EUR/JPY Medium-term Trend: Bearish

The currency pair is declining below the moving average lines on the 4-hour chart. The Yen fell to the lower price range at 156.00 before rising again. Since August 5, 2024, the Yen has been reversing above the 156.00 mark. The Yen is correcting upward since it is likely that there will be another fall below 156.00. The Yen is trading below the moving average lines but above level 156.00. When buyers maintain the price above the moving average lines, the bullish trend will start.

4-Hour Chart Indicators Reading 

The downward-sloping moving average lines are above the price bars. The decrease is indicated by the 21-day SMA being below the 50-day SMA. However, since the Yen recovered above level 156.00, the selling pressure has achieved bearish exhaustion. Doji candlesticks are used to depict the price motion.

General Outlook for EUR/JPY

The Yen has declined and retested its lower price level above 156.00.
The currency pair has retested the lower price range at level 156.00 for the fourth time. It is anticipated that the currency pair will return to its range-bound movement between 156.00 and 164.00. The moving average lines will reject the upward rise. The bullish trend will resume when the moving average lines are broken above.

Make money without lifting your fingers: Start using a world-class auto trading solution.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.