07.10.2022
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EUR/JPY Risks Further Decline as It Faces Rejection at 138.39

Key Resistance Levels: 132.00, 133.00, 134.00
Key Support Levels: 129.00, 128.00, 126.00

EUR/JPY Price Long-term Trend: Bearish
EUR/JPY pair is in a downtrend as it faces rejection at 138.39. The upward correction was repelled at the height of level 138.39. The implication is that the market will further decline to the downside. On the August 2 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement. The retracement indicates that the Yen will fall to the level of 1.618 Fibonacci extension or 128.81. From the price action, the Yen is resuming downward as it approaches the previous low at the level of 133.39.

EUR/JPY – Daily Chart

Daily Chart Indicators Reading:
The currency pair is at level 44 of the Relative Strength Index for period 14. The Yen is in the downtrend zone and may further decline. The price bars are below the moving average lines indicating a further decline of the pair. The 21-day line SMA and the 50-day line SMA are sloping southward.

EUR/JPY Medium-term Trend: Bearish
On the 4-hour chart, the Yen has declined and it is fluctuating between the moving average lines. The pair will trend when the moving average lines are breached. In the meantime, the market declined above the 50-day line and it is holding above the current support.

EUR/JPY Risks Further Decline as It Faces Rejection at 138.39
EUR/JPY – 4 Hour Chart

4-Hour Chart Indicators Reading
The pair is below the 20% range of the daily stochastic. It indicates that the market has fallen to the oversold region. The Yen is above the 50-day line SMA but below the 21-day line SMA indicating a possible range-bound move.

General Outlook for EUR/JPY
EUR/JPY is in a downward move as it faces rejection at 138.39. The price indicator has indicated a further decline of the pair. It may decline to the low of level 128.81.

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