Yesterday, we saw EUR/JPY selling off the whole day, after the pair gave some hope for more upside on Monday. The downside momentum could continue as Euro weakness could stay here for a while.
EUR/JPY is still on a downwards sloping trendline that is effective since the 2nd of February. The pair is currently meeting its strong support, which was last week’s Friday low at around 130.900. A break of that level could push the pair towards the 130.150, which is the 50 EMA area and clearly visible on a weekly chart. Also, we can see here on a 4h chart, that the RSI is below 50 at 37 mark and it is aiming lower, which is a bearish sign for the pair. The MACD is below zero and is currently slightly below the ticker line, which is also a good indication that EUR/JPY could continue moving lower.
If we do get a reversal back up, then a break of 131.800 could push the pair higher, towards its 100 EMA at around 132.650.
EUR/JPY is still on a downwards sloping trendline that is effective since the 2nd of February. The pair is currently meeting its strong support, which was last week’s Friday low at around 130.900. A break of that level could push the pair towards the 130.150, which is the 50 EMA area and clearly visible on a weekly chart. Also, we can see here on a 4h chart, that the RSI is below 50 at 37 mark and it is aiming lower, which is a bearish sign for the pair. The MACD is below zero and is currently slightly below the ticker line, which is also a good indication that EUR/JPY could continue moving lower.
If we do get a reversal back up, then a break of 131.800 could push the pair higher, towards its 100 EMA at around 132.650.