EURJPY stubbornly fights for an upturn
EURJPY is making another attempt to pierce through the 168.00 level and the support-turned-resistance trendline from February at 168.17.
Although previous efforts were fruitless, the pair keeps defending itself above long-term trendlines for the fourth day, and with oversold conditions detected by the technical indicators, there is a possibility of positive outcomes for the bulls.
A close above 168.17 might confirm an extension towards the 169.72 barrier, though only a break beyond the 20- and 50-day simple moving averages (SMAs) and April’s top of 171.56 would brighten the short-term outlook. A continuation higher could halt near the 172.55 territory, where the price got rejected in mid-July. Another success there might clear the way towards July's high of 175.41.
Should selling forces resurface, the price might again seek shelter somewhere between 166.15 and 165.00. The 200-day SMA and the 50% Fibonacci level at 164.27 will be closely monitored too. A breach could lead to a swift decline towards the 61.8% Fibonacci level of 161.65.
As regards the market trend, the pair has charted a lower low below June’s trough of 167.56, raising concerns of a bearish trend reversal as the 20- and 50-day SMAs approach a negative intersection.
To summarize, EURJPY is still exposed to downside risks, but there is a chance of a rebound or consolidation as the pair seems to be emerging from oversold conditions.
Resilient Dollar How Inflation and Trade Policy Shape the Forex Landscape
Dollar Eases as GDP Come Soft
Gold Records New All-time High
All Eyes on Today’s U.S. NFP
JPY Climbs on Talk of BOJ Rate Hike, DXY Dips
Forex Market Report - 31st July 2024
Dollar Plummets against Yen as BOJ Rate Hike Bets Rise
