Technical Analysis – EURJPY bearish as it dips beneath 200-MA
- Anthony Charalambous
EURJPY’s bearish trajectory is gaining pace after the 200-period simple moving average (SMA) at 129.63 failed to provide the pair with footing as it was tested for a second time by sellers. The 50-period SMA has rolled over and has completed a bearish crossover of the flattened 100-period SMA, an action that feeds the developing negative trend in the pair.
The short-term oscillators are further sponsoring the negative bearing in the price. The MACD, some distance beneath the zero threshold, has slid marginally back under the red trigger line, while the RSI is heading lower in bearish territory. Furthermore, the strong negative charge in the stochastic oscillator is endorsing additional downward moves in the pair.
If the current price course persists, initial downside hindrance could arise at the nearby 129.27 barrier before sellers challenge the 128.85-129.08 reinforced border. Should the bears successfully drive the price past these obstacles, the next support level at 128.54 may come into play before the price pursues the 128.00 handle.
Otherwise, if buyers re-emerge and pilot the price above the 200-period SMA at 129.63, returning optimism could then steer the price towards the 130.08 high, where the mid-Bollinger band also resides. Climbing further, a resistance zone could act between the 50-period SMA at 130.47 and the 100-period SMA at 130.59. Successfully overcoming this zone may encourage the bulls to seek out the 131.00-131.17 resistance section.Summarizing, EURJPY is sustaining a bearish tone below the SMAs and the 130.00 mark. That said, ultimately to reinforce a bullish drive, the price would need to thrust beyond the 131.41-131.60 resistance barricade, while sinking south of the 127.30-127.50 support base would further fuel the decline in the pair.
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