FX.co ★ EUR/JPY

EURJPY Trading Analysis: The EUR/JPY price looks to be moving sideways at the moment, trading above the 100-day simple moving average downtrend line at 177.623, which would be a powerful breakout for buyers. However, overadjustment might provide a short-term threat to the resistance consolidation level of 177.523. If the inflation index breaks the pivot points at 178.073 and hits the middle line of the oscillator cloud and the upper Bollinger band at 179.773, it might potentially be advantageous for the market. Indeed, there is. However, a 50% Fibonacci retracement level of 178.823 would be warranted considering the restricted chance of recovery and further down. Currently, the comeback might be derailed by the 200-day simple moving average (SMA), which is limiting bullish movement. The MACD is above its red trigger midline and overbought, while the RSI is still below the neutral 50 despite the recent rising trend. All eyes will be on the support-to-resistance trend line at 176.123, which will act as a significant level of support and resistance as long as selling pressure is there. Following the sharp swing at the 72.5% Fibonacci retracement level of 179.623, the highest level of the retracement, further advances might be confirmed if the price breaks through 177.923. A bullish inverted head and shoulders pattern is expected to emerge above 179.023, and the 25-day and 50-day SMAs are expected to cover the overbought bounce at 177.423 in addition to the strength of the previous closing candle. The first line of defense prior to the hourly pivot point will be the 20-day SMA at 179.323 if the primary sellers continue to hold firm and reject the upward bottom.