EUR/JPY Price Analysis: Justifies 21-DMA breakdown to refresh multi-day low under 155.00
- EUR/JPY drops to the lowest level in three weeks, down for the sixth consecutive day.
- Bearish MACD signals, RSI’s retreat from overbought territory joins 21-DMA break to favor sellers.
- Convergence of previous resistance line, short-term support line challenges the bears.
- Multiple hurdles near 158.00 stand tall to prod pair buyers.
EUR/JPY remains on the back foot for the sixth consecutive day as it flashes the 154.93 figure heading into Tuesday’s European session. In doing so, the cross-currency pair declines to the lowest levels in three weeks.
That said, a clear downside break of the 21-DMA, near 155.85 by the press time, joins the bearish MACD signals and the RSI (14) line’s U-turn from the overbought territory to suggest the quote’s further downside.
However, a convergence of the previous resistance line from late October 2022 and ascending trend line from March 24, close to the 152.00 round figure, appears a tough nut to crack for the EUR/JPY bears.
If at all the quote remains bearish past 152.00, Mays high near 151.60 and the 150.00 psychological magnet will entertain the EUR/JPY bears before directing them to the 100-DMA support of around 148.40.
Meanwhile, a daily closing beyond the 21-DMA, around 155.85 at the latest, could recall the short-term buyers of the EUR/JPY pair.
Though, a slew of resistances around the 158.00 and the 160.00 round figure will challenge the bulls afterward.
EUR/JPY: Daily chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
