FX.co ★ GokBoruHunter | EUR/JPY

EUR/JPY DAILY CHART ANALYSIS After two days gains, EUR/JPY is weakening, and it is currently trading around 184.10 during the European session on Thursday. The day, to, day chart analysis indicates that the forex pair is at present undergoing a consolidation phase as it is restricted within a horizontal channel. However, the 14-day Relative Strength Index (RSI) still stands at 56, which means that it is comfortably staying above the neutral 50 level. This not only signifies positive momentum but also implies that the pair is not yet in an overbought situation; hence, there is still a chance for more recovery in the near future. The short-term perspective of EUR/JPY is slightly bullish as the pair has maintained its position above the nine-day and 50-day Exponential Moving Averages (EMAs). This has led to the forex pair depicting the overall uptrend of the market despite the recent consolidation phase. The nine-day EMA has just turned up again, which is a sign that the buyers are getting the upper hand once more following the selling pressure from the 186.00 level. Should such a scenario play out, the rebound of EUR/JPY towards the upper limit of the horizontal channel, roughly at 186.00, is very likely. A break above this level may pave the way for a further rally toward the all-time high of 186.88, which was hit on January 23rd. However, there is instant support reversal around the nine-day EMA at 183.33, where the next support closely follows the 50-day EMA at 182.99. If the price falls under these moving averages, the bullish energy will fade, and the pair may retest lower levels. A big drop will reveal a two-month low at 180.81, which was logged on February 12. The continuation of the downtrend might see the price heading to the lower edge of the horizontal channel, near 180.10. The persistence of the selling pressure would result in the bearish trend bias, which might take the EUR/JPY pair down to a four-month low at 175.70. Essentially, EUR/JPY is in a fragile stage of consolidation, and the market is waiting for a strong trigger to break the next directional move. The pair is trading above significant moving averages, which suggests the overall trend is still bullish; however, any prolonged drop below 183.33 and 182.99 will exert downward pressure on the pair and thus lead to a further drop in the price level. On the other hand, if the pair remains above these support levels, then the price may bounce and challenge the resistance levels with 186.00 and 186.88 marking the key upside targets.