EUR/JPY Price Analysis: Pair slides to 162.15 as bearish momentum intensifies
- EUR/JPY drops sharply on Monday toward key 162.00 support levels.
- Technical indicators show mounting selling pressure, with the pair nearing the 20- and 100-day SMA convergence.
- Focus shifts to whether the pair can stabilize around 162.00 or risk further downside.
The EUR/JPY cross extended its losses on Monday, falling by 0.90% to settle at 162.15. The move highlights increased bearish momentum as the pair approaches a critical technical juncture, with the 20- and 100-day Simple Moving Average (SMA) convergence at 162.00 set to serve as a significant support zone. The steep decline marks a continuation of the downward trend observed over recent sessions, putting buyers under renewed pressure.
Technical indicators reinforce the bearish outlook. The Relative Strength Index (RSI) has dropped sharply to 49, slipping into negative territory and signaling weakening buying interest. Simultaneously, the Moving Average Convergence Divergence (MACD) histogram displays decreasing green bars, reflecting fading bullish traction and a growing bearish bias in the short term.
Looking ahead, the 162.00 level, where the 20- and 100-day SMAs converge, will be crucial in determining the pair’s next move. A decisive break below this area could open the door to further losses, with the next support seen at 161.50. Conversely, stabilization above this zone may encourage buyers to regroup and attempt a recovery toward the 163.00 resistance level. The pair’s ability to hold its ground at these critical levels will shape its trajectory in the coming sessions.
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.
