EUR/JPY Price Analysis: Pair stands neutral, 20-day SMA stands as a strong resistance
- The daily MACD and RSI indicate decreased bearish momentum.
- A notable support threshold is holding up at 168.00, with recovery levels eyed at 169.70, around the 20-day SMA.
- Despite recent downturns, the broader bullish outlook remains sustained by the 100 and 200-day SMAs.
On Tuesday, the EUR/JPY pair continued to float around the 168.00 level, moving minorly negative as the pair continued sideways trading. Any potential recovery falls at the hands of the 20-day Simple Moving Average (SMA) which is currently near the 169.70 mark, which acts as an upper boundary hurdle.
The daily Relative Strength Index (RSI) has nudged lower towards 50 maintaining a bearish aura. This, coupled with the continuing display of flat red MACD bars, construes potentially consolidative behavior amidst the ongoing neutral landscape. Hence, the market appears to be in a holding pattern pending a significant driver for more substantial moves.
EUR/JPY daily chart
That being said, the overarching bullish forces remain at play. The fundamental stronghold arises from the 100 and 200-day SMAs present at approximately 164.00 and 161.00, which might provide defense against potential losses.
To conclude, traders remain focused on the movements around the 168.00 support level and the 169.70 recovery hurdle. A breach either way may decide the direction of the upcoming sessions.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
