EUR/JPY Price Analysis: Euro drifts near 162.00 as bearish pressure starts to build
- EUR/JPY trades around the 162.00 zone after slipping modestly on Tuesday’s session.
- Overall bias leans bearish, with short-term averages and MACD confirming downside risk.
- Key support levels are close below, while longer-term trend indicators remain mildly bullish.
The EUR/JPY pair weakened slightly on Tuesday, hovering around the 162.00 mark after the European session, with price action holding mid-range between intraday highs and lows. While selling pressure remains contained, short-term technicals continue to lean bearish, setting the stage for potential further softness heading into the Asian session.
Momentum readings are mixed. The Relative Strength Index holds near the 49 level, indicating neutral momentum. The Moving Average Convergence Divergence, however, issues a sell signal, confirming that bearish momentum may be gathering strength. Meanwhile, the Stochastic RSI Fast and Commodity Channel Index are both neutral, offering no clear counterweight to the bearish signals.
The trend picture is skewed toward the downside in the short term. The 10-day Exponential and Simple Moving Averages are both trending lower and now sit above price action, acting as overhead resistance. The 20-day Simple Moving Average reinforces this outlook with a similar downward slope. However, the longer-term 100-day and 200-day Simple Moving Averages remain below and rising, suggesting broader trend support still holds for now.
Support is seen at 161.75, 161.70, and 161.51. Resistance levels are aligned at 162.10, 162.14, and 162.29. A break below support could trigger a deeper pullback, while reclaiming the short-term moving averages would be required to neutralize the immediate bearish tone.
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Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
