Topic: Forex Technical Analysis by FXOpen
EUR/JPY Technical Analysis
The Euro remained in an uptrend and traded above the 132.00 and 132.50 resistances against the Japanese Yen. However, the EUR/JPY pair faced a strong resistance near the 133.00 and 133.10 levels.
The pair failed to hold gains above 133.00 and started a downside move. It declined, broke the 132.50 support area, and also settled below the 50 hourly simple moving average.
The decline was strong as the pair traded below 132.00, but buyers protected losses near a major support area at 131.70. The pair formed a base above 131.70 and later started a fresh upward move. It traded above the 50% Fib retracement level of the last decline from the 133.11 high to 131.57 low.
However, the pair failed to move above the 132.50 level and the 50 SMA. There is also a major bearish trend line in place with resistance at 132.40 on the hourly chart of EUR/JPY. Moreover, the 61.8% Fib retracement level of the last decline from the 133.11 high to 131.57 low acted as a resistance.
Therefore, the pair seems to be facing a major hurdle near the 132.40-50 zone. A break above 132.50 is needed for an acceleration towards the 133.00 resistance. On the downside, the 132.00 and 131.70 levels are strong supports. Below the last, the pair may trade towards the 131.20 support.
Read also GBP/JPY technical analysis here.