The EUR/JPY Moves Sideways Above 161.50

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 Yen hit a high of 165.22 and then moved sideways above 161.50.The currency pair has been trading above the moving average lines but below the barrier at level 164.00. Buyers tried more than three times to keep the price above the 164.00 mark but were unsuccessful. The currency pair dropped below the moving average lines to reach 161.08. The range of the Yen was formerly between 160.00 and 164.00. 

A retesting of the present support at level 161.50 has caused the currency pair to retreat. The present support at level 161.50 will hold if the range-bound move starts. However, the Yen will drop back to its previous level of 160.00 once the current support is broken. 

Daily Chart Indicators Reading:

The recent decrease in the value of the Yen has placed it in the bearish trend zone. Long candlestick tails are heading between 160.00 and 161.00. Strong buying pressure is indicated by the lengthy candlestick tails across the present support levels. The horizontal lines of the moving average are above the price bars.

EUR/JPY Medium-term Trend: Bearish

The currency pair resumed selling pressure below the moving average lines after reaching a high of 165.16. After falling to 161.08, the Yen recovered above 161.50. The bearish trend of the EUR/JPY has been reversing since it reached the support level of 161.50. The Yen retreated after hitting the crucial support on May 23. The currency pair oscillates above 161.50 but below the moving average lines.

4-Hour Chart Indicators Reading

The moving average lines have a bearish crossover and are heading south. Furthermore, the 21-day SMA is lower than the 50-day SMA. displaying a bearish indication. The selling impulse has, however, diminished above 161.50. Long candlestick tails are also visible crossing the crucial support level, which is at 161.50.

General Outlook for EUR/JPY

The value of the Yen moves sideways above 161.50 and below the moving average lines. The price movement has been limited to the 161.50 support level and below the 164.00 resistance level. Currently, the pair is below the moving average lines on the lower time frame but above level 161.50. When the pair breaks above the moving average lines, it will start to move in a positive direction again. Since the Yen is still trading in the bearish trend zone, the forex signal will be negative.

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