The EUR/JPY Tumbles below the 174.00 Barrier

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: Ranging

The EUR/JPY pair rises to a high of 173.90 but tumbles below the 174.00 barrier. Buyers could not keep the price above 174.00, resulting in the fall. This is the second time the Yen will achieve its historical high of 174.00. Since July 28, the currency pair has been forced to trade within a range, above the 170.00 support but below 174.00.

The existence of Doji candlesticks has restrained the price movement. Buyers have pushed the price above the moving average lines, but the price movement has been restricted inside a narrow range. The Yen will fall if it approaches and crosses the present support level of 170.00. The Yen is now trading at 172.71.

Daily Chart Indicators Reading

The Yen is currently trading in the overbought zone of the market. The price bars are situated above the horizontal moving average lines. This indicates that the currency pair is moving sideways. The 21-day SMA is above the 50-day SMA support, indicating a sideways trend.

EUR/JPY Medium-term Trend: Ranging

The Yen is trading sideways between 171.00 and 173.50. The currency price has stalled below its recent high, although it remains above the moving average lines. If the Yen falls below the moving average lines and breaks through the existing support, it will restart its downward trend. The Yen has lost its bullish ascent as it falls below the 21-day SMA support.

4-hour Chart Indicators Reading

The 21- and 50-day SMAs are sloping horizontally, indicating a lateral trend. The Yen may continue to tumble if it falls below the 21-day and 50-day SMA support levels. On the positive side, there are long candlestick wicks pointing across the 173.00. The wicks on these candlesticks suggest significant selling pressure at high prices.

General Outlook for EUR/JPY

The EUR/JPY pair enters the market’s overbought zone but tumbles below the 174.00 barrier. The Yen is finding difficulty at its recent high. On the 4-hour chart, the Yen is trading above 172.50 but below 173.50. The Yen’s upward movement remains uncertain as it approaches the overbought sector of the market. The currency pair will fall if sellers emerge in the market’s overbought zone. Meanwhile, the forex signal is range-bound below the level 174.00, the overhead resistance level.

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