The EUR/JPY Marginally Drops as It Hits the 163.00 Barrier

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 resumes its decline as it hits the 163.00 barrier. On April 7, the currency pair recovered and broke above the moving average lines. The bullish momentum was stopped by the 50-day SMA. Today, the Yen is losing value. The selling pressure is expected to reach the 21-day SMA, or level 160.99. However, if the bears break through the 21-day SMA, the pair will fall to 158.00. However, if the 21-day SMA support holds, the currency pair will have to move in a range-bound manner for a few days. The current exchange rate for the Yen is 161.69.

Weekly Chart Indicators Reading:

Long candlestick wicks point across the 50-day SMA and the resistance at level 164.00. This implies that selling pressure is high at 164.00. The price bars are in between the lines of the horizontal moving average. The range-bound move will continue if the decline is halted above the 21-day SMA.

EUR/JPY Medium-term Trend: Ranging

On the daily chart, the Yen has dropped and broken below the 21-day SMA support. Before continuing its downward trend, the currency pair was retested after being repulsed at the resistance zone of 163.00. It is descending approaching level 160.00, or the 50-day SMA. If the currency pair fails to break through the level 160.00 support, it will be trapped.

Daily Chart Indicators Reading

The pair has dropped below the 21-day SMA due to selling pressure. The Yen will continue to be stuck in a narrow range as a result of price fluctuation. Candlestick wicks, which show significant selling pressure at higher price levels, have dominated the price movement. The 50-day SMA is sloping horizontally, while the 21-day SMA is above it.

General Outlook for EUR/JPY

The EUR/JPY is trending sideways as it hits the 163.00 barrier. The Yen hasn’t broken above level 163.00 on April 11 last week. The currency pair is still declining at 161.44. It is marginally dropping due to the presence of Doji candlesticks. The forex signal is unfavorable since it is anticipated that the Yen will reach 160.

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