Euro Price Forecast: EUR/JPY Stuck in a Trendless Move – Levels to Consider
EUR/JPY Price Outlook
EUR/JPY– Trading in a Sideways Pattern
On July 2, EUR/JPY rebounded nearby the level highlighted on our previous update at 122.52 and continued trading in a sideways pattern.
Alongside, the Relative Strength Index (RSI) pointed lower crossing below 50 then remained flat around 45 negating any effective momentum from the buyers nor the sellers.
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EUR/JPY DAILY PRICE CHART (Jan 25, 2017 – JUl 8, 2019) Zoomed OUT
EUR/JPY DAILY PRICE CHART (Mar 7, 2019- JUL 8, 2019) Zoomed IN
Looking at the daily chart we notice on last Monday EUR/JPY slipped to a lower trading zone 121.25 – 122.52 eying a test of the low end. Therefore, a break to the low end may pave the way to the price towards 119.78, nonetheless; the weekly support levels underlined on the chart would be worth monitoring.
On the other hand, a close above the high end of the aforementioned trading zone could cause a rally towards 124.40, however; the weekly resistance levels highlighted on the chart should be watched along the way.
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EUR/JPY Four-HOUR PRICE CHART (June 3, 2019 – JUL 8, 2019)
Looking at the four-hour chart we notice on Friday EUR/JPY rebounded from 121.93. Thus, a break above this high may see the price even higher towards 122.52, although; 23.6% fib retracement at 122.15 should be kept in focus.
On the flip-side, we notice today EUR/JPY broke below the July 4 low at 121.53 eyeing 121.25, hence a break below this level could send the price towards the June 3 trough at 120.78, however; the June 21 low marked on the chart needs to be considered.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.