The EUR/JPY Reaches an Overbought Level of 172.28

EUR/JPY Significant Levels

Resistance Levels: 172.00, 174.00, and 176.00
Support Levels: 164.00, 162.00, and 160.00

EUR/JPY Price Long-term Trend: Bullish

The EUR/JPY pair surges as it reaches an overbought level of 172.28. The currency pair has surpassed the forecasted price level of 171.31 and the Fibonacci retracement level of 1.618. However, the Yen has retraced and is currently stopped above level 171.00. If the 171.00 support level holds, the bullish trend could restart.

The Yen is anticipated to increase to 175.46, its historical price level. The recent price action saw the bullish trend conclude at the high of level 175.46. Today, if the Yen retraces and falls below the 21-day SMA, the present trend will be terminated.

Weekly Chart Indicators Reading:

The price bars have risen significantly to the projected price level while remaining above the moving averages. The moving average lines are sloping upward, with the 21-day SMA above the 50-day SMA, indicating an uptrend. The market has hit an overbought level as the Yen declines. 

EUR/JPY Medium-term Trend: Bullish

The currency pair has surged to a high of 172.28. The Yen is undergoing a slight retracement, reaching a low of 171.36. However, the retracement may stop above the present support level of 171.00. If the current support holds, the Yen will rise to its prior high of 175.46. The selling pressure will remain low above the 21-day SMA support if level 171.00 is broken. 

Daily Chart Indicators Reading

The moving average lines are likewise sloping northward, with the 21-day SMA higher than the 50-day SMA. The 21-day simple moving average serves as the price bars’ support line. The Yen will increase whenever it bounces above the 21-day SMA support. However, if the 21-day Support is breached, the Yen will reverse.

General Outlook for EUR/JPY

The currency pair rises significantly as it reaches an overbought level of 172.28. The Yen achieved a high of 172.28, but it is now in a slight retracement. On the upside, the Yen will restart its bullish trend once it breaks above the resistance of 172.00. Currently, the Yen is trading below its recent high in expectation of a trend. The Forex signal is bearish as the Yen enters the overbought zone of the market. 
 
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