EUR/JPY Price Analysis: Support Holds Firm at 168.00, Losses Recovered
On Monday, the EUR/JPY pair initially dipped to 168.15 but rebounded to 168.80, confirming the strength of the support level around 168.00. While a recovery above the 20-day SMA is necessary to prevent further declines, the 168.00 level remains a critical support zone for bullish sentiment.
Technical Indicators
- The Relative Strength Index (RSI) on the daily chart reads 47, suggesting a slightly bearish bias.
- The daily Moving Average Convergence Divergence (MACD) displays flat red bars, indicating steady bearish momentum.
- However, the broader bullish trend in the EUR/JPY pair remains intact, supported by the 100-day and 200-day SMAs at 164.00 and 161.00, respectively.
Outlook
Despite recent bearish tendencies, the current fluctuations are likely corrective in nature and not indicative of a major trend reversal. The strong support levels provided by the SMAs suggest that the pair may consolidate before experiencing significant shifts. However, a break below 168.00 could trigger further declines.