The EUR/JPY Resumes Its Range Below the Level of 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: Ranging

The EUR/JPY exchange rate has risen above the lines of the moving average but resumes its range below the level of 164.00. The currency pair oscillates below the resistance level at 164.00 but above the 21-day SMA support. Buyers have been unable to sustain the upward momentum above the 164.00 mark. The pair is presently retracing after hitting the resistance level at 164.00. 

The current sideways trend may stop if buyers keep the price above 164.00. The positive trend of the Yen will begin. On the other hand, if the Yen drops below the 21-day SMA, its value will decrease. The Yen will return to its previous low of 160.00. The Yen is now trading at 163.69.

Daily Chart Indicators Reading:

The Yen will trade in the bullish trend zone as the price bars remain above the moving average lines. There are long candlestick wicks pointing across the resistance at level 164.00. There is a lot of selling pressure at the 164.00 high. The 50-day SMA and the horizontal 21-day SMA point to the current trend.

EUR/JPY Medium-term Trend: Ranging

The currency pair has started an upward correction on the 4-hour chart. The 164.00 barrier has halted the bullish momentum. The Yen recovered and is currently trading above the support level of 163.50. If the current support holds, the bullish trend will resume. The Yen will rise and retest the barrier at level 164.00. The downward trend will resume when the price falls below the moving average lines.

4-Hour Chart Indicators Reading

The price bars vary proportionately to the moving average lines, even though they are horizontal. The level of price volatility has been limited by the usage of Doji candlesticks. A bullish surge is indicated by the 21-day SMA’s position above the 50-day SMA.

General Outlook for EUR/JPY

The EUR/JPY has reached the overbought region of the market as it runs into resistance at a level of 164.00. The Yen is likely to encounter resistance as it starts its range-bound move between the price levels of 158.00 and 164.00. The Yen has stopped above 163.00 despite declining. The FX signal is sideways and being rejected at the high of 164.00.

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