FxNews—EUR/JPY trades at approximately 159.1, nearing the upper line of the bearish channel. The recent surge in the currency pair‘s price was anticipated due to the RSI 14 and Stochastic oversold signals in early December.
The Technical Analysis
The Stochastic shows 76 in the description, dipping from overbought territory. This means the Euro is no longer overpriced compared to the Japanese Yen.
Please note that the primary trend should be considered bearish since EUR/JPY prices are below the 75-period simple moving average.
Watch The Key Resistance to EURJPY Bearish Trend
The immediate support is at 157.63. From a technical perspective, the downtrend will likely resume if EUR/JPY dips below this support. In this scenario, the next bearish target could be the 156.0 mark.
Conversely, if bulls close and stabilize prices above the 159.5 mark, the bearish outlook should be invalidated. If this scenario unfolds, EUR/JPY can potentially rise toward the next resistance area at 160.93.