FxNews—In our previous article (Watch EURJPY as It Nears Critical 165.0 Mark), we mentioned that the continuation of the uptrend in the EUR/JPY pair depends on whether the prices end up above the critical resistance level of 165.0. As the 4-hour chart below shows, bulls couldn’t exceed the 165.0 mark, and consequently, the downtrend resumed.
As of this writing, the currency pair trades at approximately 163.5, exceeding the October 14 high active support.
EURJPY Technical Analysis – 15-November-2024
As for the technical indicators, the price is below the 50- and 100-period simple moving average, making the primary trend bearish. Furthermore, the Awesome Oscillator histogram is red, nearing the signal line. Furthermore, the Stochastic and RSI 14 decline, depicting 48 and 37 in the description.
These developments in the technical indicators suggest that the primary trend is bearish, and the downtick momentum should continue.
EURJPY Forecast – 15-November-2024
The pivot point between the bull and bear markets is at the 165.0 mark, backed by the 100-period SMA. The outlook of the EUR/JPY trend remains bearish as long as the price is below the pivot. In this scenario, the next bearish target could be the 78.6% Fibonacci (support) at 162.9.
Furthermore, if the selling pressure exceeds 162.9, the downtrend could extend to the October 24 low at 161.9.
Please note that the bearish outlook should be invalidated if the Euro breaks above the 165.0 mark against the Japanese yen.
- Support: 163.1 / 161.9
- Resistance: 164.3 / 165.0