The EUR/JPY Moves Sideways but Faces Rejection at 164.00

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: Bearish

The EUR/JPY is in decline as it faces rejection at 164.00. The selling pressure has lessened after reaching a low of 154.41. Bulls bought the dips as the currency pair began a sideways move above level 157.29 but below the moving average lines. The 21-day moving average line repelled the upward corrective twice, causing the pair to resume selling pressure.

The price indication for the currency pair has revealed a further decrease. On the August 5 downturn, a retraced candle body approached the 78.6% Fibonacci retracement level. The correction suggests that the Yen will fall to the 1.272 Fibonacci extension, or level 148.67. Meanwhile, the pair is trading at 158.08 at the of writing.

Weekly Chart Indicators Reading:

The price bars have been below the moving average lines since July 29. On August 12, buyers attempted to keep the price above the moving average lines but were unsuccessful. However, the moving average lines trend upward, indicating the past uptrend. If the current support level of 154.39 is broken, the Yen will undoubtedly decline.

EUR/JPY Medium-term Trend: Ranging

On the daily chart, the negative trend has ended, and the Yen has begun a range-bound motion. The Yen is trading above 157.29 but below the moving average lines following the end of the bearish trend. The bulls have retested the 21-day SMA, attempting to resume a bullish trend. The Yen has surpassed its current support level of 157.29.

The range-bound movement will resume if the existing support holds. If the current support is breached, selling pressure will begin.

Daily-hour Chart Indicators Reading  

The price bars are now below the moving average lines, having previously been caught between them. The Yen will fall if the price bars stay below the moving average lines. The moving average lines have slowed the increasing trend.

General Outlook for EUR/JPY

The EUR/JPY is trading sideways but faces rejection at 164.00. The Yen is gaining since the bearish momentum has stalled around the present support level of 157.29. The rising movement may encounter resistance at the 21-day SMA or level 164.00. When the resistance level is breached, the Yen will resume its positive trajectory.

The forex signal is unfavorable, as the Yen continues to be rejected at its recent high.


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