EUR/JPY Price Analysis: Sellers attack 50-SMA below 137.00
- EUR/JPY remains pressured towards short-term key SMA after declining the most in more than a week.
- Downside break of the one-week-old support line keeps sellers hopeful.
- 200-SMA, descending trend line from late June adds to the upside filters.
EUR/JPY holds lower ground near 136.80, after renewing the multi-day low on the break of the weekly support line. However, the 50-SMA challenges the pair sellers during Thursday’s initial Asian session.
Even so, downbeat RSI (14), not oversold, joins the bearish MACD signals to favor EUR/JPY bears.
Hence, the EUR/JPY prices are likely to break the immediate support, namely the 200-SMA level of 136.45, which in turn could direct the quote towards two-week-old horizontal support near 135.70.
Should the pair remains bearish past 135.70, the monthly low near 133.40 will be in focus.
On the flip side, a convergence of the previous support line and the 200-SMA appears a tough nut to crack for the EUR/JPY bulls, around 139.05 at the latest.
Even if the quote rises past 139.05, a downward sloping resistance line from late June, near 139.40-45, will precede the 140.00 threshold to challenge the EUR/JPY pair’s further upside.
Overall, EUR/JPY remains on the bear’s radar while targeting the monthly low as nearby support.
EUR/JPY: Four-hour chart
Trend: Further weakness 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.
