EUR/JPY Price Analysis: Pair finally broke down below support and fell towards 163.00.
- EUR/JPY sank on Friday to near 163.10 after a 0.72% decline on the day.
- Pair's price action plunged to 163.00 after facing rejection at the 164.00 SMA.
- The MACD and RSI technical indicators signaled increasing selling pressure, contributing to the pair's downtrend.
The EUR/JPY currency pair witnessed a significant decline on Friday, losing 0.72% to reach a low of 163.10. Prior to this drop, the pair faced resistance at the 164.00 Simple Moving Average (SMA), which contributed to its downward movement.
The technical indicators employed in this analysis, namely the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), further underscore the bearish sentiment surrounding the EUR/JPY pair. The MACD histogram's red coloration and increasing size point to rising selling pressure, corroborated by the MACD line's position below the signal line. The RSI, with a value of 43, resides in negative territory and exhibits a sharply declining slope, indicating an increase in selling pressure.
The pair's probable continuation of its downward trajectory is suggested by its trading below the 163.50 resistance level. Furthermore, support levels at 163.00, 162.50, and 162.00 deserve attention, while resistance levels at 164.00, 164.50, and 165.00 warrant monitoring.
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.
