EUR/JPY Price Analysis: Buyers intervene, lifting pair above 163.00, still holds losses
- EUR/JPY declined by 0.47% to 163.10 in Tuesday's session.
- Price rallied above 163.00 after buyers stepped in following a decline to 161.50, but indicators remain deeply negative.
- The pair might continue shedding ground as long as it remains below the 20-day SMA.
The EUR/JPY declined by 0.47% to 163.10 in Tuesday's session, dragged lower by the strength of the Japanese yen. However, after the pair fell to a low of 161.50, buyers stepped in and pushed it back above 163.00. Nevertheless, if the pair can sustain above the 20-day Simple Moving Average (SMA), it could potentially reverse its recent losses and resume its uptrend.
Technical indicators for the EUR/JPY currency pair point towards a negative outlook. The oscillator Relative Strength Index (RSI) has dipped to 46, implying growing selling pressure. Furthermore, the Moving Average Convergence Divergence (MACD) is considerably bearish, with its histogram trending downwards. Taken together, these indicators suggest a bearish sentiment for the EUR/JPY pair, potentially leading to continued declines.
The EUR/JPY pair slightly recovered on Tuesday, but technical indicators point to a negative outlook. Both the RSI and MACD are deeply negative, indicating further declines are likely as long as the pair remains below the 20-day SMA. Buyers intervened, lifting it above 163.00, but they may not be able to sustain this level as technical indicators suggest the pair is set to resume its downtrend and decline further in the near term.
EUR/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
