FxNews—The EUR/JPY pair tests the bullish fair value gap as resistance at approximately 163.65. Meanwhile, the currency pair trades below the 100-period simple moving average, which signals a downtrend.
As of this writing, EUR/JPY trades at about 163.96, floating inside the bullish Fair Value Gap, as the 4-hour chart shows.
EURJPY Technical Analysis – 11-November-2024
As for the technical indicators, the Awesome Oscillator shows bullish momentum, with a green histogram rising toward the signal line from below. Additionally, the Stochastic Oscillator and RSI 14 records show 31 and 38, respectively, meaning the market is not oversold anymore.
Overall, the technical indicators suggest the primary trend is bearish because the price is below the 100-SMA. Still, EUR/JPY has the potential to test the upper resistance level before the downtrend resumes.
EURJPY Forecast – 11-November-2024
The October 14 high at 163.65 is the immediate support. If this support holds, the current uptick momentum can rise toward the 165.0 resistance.
Furthermore, if bulls pull the price above the 165.0 mark, the bearish outlook should be invalidated. If this scenario unfolds, the trend should be considered reversed from bearish to bullish.
Bearish Scenario
Conversely, the downtrend will likely resume if bears close and stabilize the price below 163.65. The next bearish target in this scenario could be the 78.6% Fibonacci retracement level at 162.94.
- Support: 163.65 / 162.94
- Resistance: 164.31 / 165.0