EUR/JPY consolidates Tuesday’s losses, below 159.00

EUR/JPY was seen in the 158.93 - 158.70 range, trading relatively quiet.
Indicators exhibit signs of bullish exhaustion.
Fundamentals may favour the JPY in the next sessions.

Patricio Martín FXStreet

In Wednesday’s session, the EUR/JPY consolidated Tuesday losses and traded in a narrow range after declining by 0.65% on Tuesday and clearing all Monday gains. At the beginning of the week, the cross jumped to a multi-year high of 159.90, it highest level since 2008, but the buyers are struggling to hold that momentum.

On the daily chart, there is a neutral to bearish technical outlook as the bulls are losing traction. The Relative Strength Index (RSI) turned flat in positive territory, while the Moving Average Convergence (MACD) displays lower green bars. Furthermore, the cross has continued side-ways trading since late July in the 154.00 - 160.00 range, with both parties struggling to make a move beyond those levels. However, on the broader scale, the pair is above the 20,100,200-day Simple Moving Average (SMA), highlighting the continued dominance of bulls.

That being said, the JPY could get additional momentum as higher Japanese government bond yields amid monetary policy tweak speculations could act as a catalyst and revive the buying momentum. On Thursday, the European Central Bank (ECB) announces its monetary policy decision which could also provide impetus to the pair.

Support levels: 158.50, 158.00, 157.00.

Resistance levels: 159.00, 159.50, 160.00.

EUR/JPY Daily Chart

EUR/JPY

Overview
Today last price	158.62
Today Daily Change	-0.15
Today Daily Change %	-0.09
Today daily open	158.77

Trends
Daily SMA20	157.76
Daily SMA50	157.96
Daily SMA100	156.83
Daily SMA200	150.94

Levels
Previous Daily High	159.92
Previous Daily Low	158.54
Previous Weekly High	158.93
Previous Weekly Low	157.06
Previous Monthly High	158.66
Previous Monthly Low	156.58
Daily Fibonacci 38.2%	159.06
Daily Fibonacci 61.8%	159.39
Daily Pivot Point S1	158.23
Daily Pivot Point S2	157.69
Daily Pivot Point S3	156.85
Daily Pivot Point R1	159.61
Daily Pivot Point R2	160.46
Daily Pivot Point R3	161

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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