The EUR/JPY Remains Positive below 182.00

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 currency pair retreats but remains positive below the 182.00 barrier. The bullish momentum was halted near the recent high as sellers emerged in the overbought zone. The Yen is falling towards its next support at 178.97.

On the downside, if the negative momentum comes to a halt at 178.97, the Yen will be compelled to trade in a range above the moving average lines and the resistance at the level 182.00. However, if the negative trend falls below the 21-day SMA support, the bullish trend is likely to be terminated. The Yen will fall to a low above the 50-day SMA support. In the meantime, the Yen has dropped to a low of 180.55.

Daily Chart Indicators Reading

The Yen is declining and approaching the upward-sloping 21-day and 50-day moving average lines. The Yen is retreating and approaching 21-day SMA support. The present upswing will continue if the Yen falls and finds support above the 21-day SMA. Doji candlesticks have been used to represent price action.

EUR/JPY Medium-term Trend: Bullish

The EUR/JPY has dropped between the moving average lines following the recent market surge. The implication is that price movement will be constrained to a narrow band between 179.00 and 180.00. Currently, the Yen has slipped below the 180.79 barrier but remains above the 179.00 support. When these levels are breached, the Yen will begin to trend.

4-hour Chart Indicators Reading

The currency pair is caught between the 21-day SMA resistance and the 50-day SMA support. On the upside, buyers are struggling to lift the Yen above the 21-day SMA. If the purchasers succeed, the currency will appreciate. In the same vein, the Yen will fall in value below the 50-day SMA support if the current support is breached.

General Outlook for EUR/JPY

The EUR/JPY pair is declining between the moving average lines on the 4-hour chart but remains positive below the 182.00 barrier. The Yen has dropped to 180.65 while remaining within a narrow range. The currency pair will increase to 182.00 if buyers sustain the price above the 21-day SMA barrier.

If the bears break through the 50-day SMA support, the Yen will fall much deeper to 178.97. Meanwhile, the forex signal is bearish as the Yen enters the overbought zone of the market.

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