FX.co ★ EUR/JPY

EURJPY Trading Analysis: The price of the EURJPY is now trading at 176.071, and a break over the 100-day simple moving average at 177.121—a significant barrier where buyers are exerting pressure on current and future expansion across new levels—could break a downward trend at the neutral bottom at 177.801. Furthermore, the price will drop significantly below the 38.8% Fibonacci retracement level of 174.801 to the downside and open the door for selling at 173.691 if sellers put pressure on the current optimistic feeling in the US index rate. Although the momentum indicator's positive slope encourages more higher, the upper-middle trendline, which is within breathing distance of 179.011, is covered by space for improvement in the Bollinger Bands and oscillators. Prior to that, the MACD was trading below its red trigger midline, preventing bearish activity around 173.691 that may have abruptly stopped the recovery trend. Keep in mind that the RSI is moving toward positive territory but has not yet risen over the neutral 50 line. If the price rises to break out of the channel, all eyes will be on the resistance trendline around 181.771. Thus, more gains to 183.971 might be confirmed by a move higher and a break over the 71.3% Fibonacci retracement point. A bullish harmonic triangle pattern around 178.241 indicates that the price may revert south on the 4-hour time frame if purchasing enthusiasm diminishes right away. A stronger negative correction may reach immediate support at 171.461, while further losses would cause a rapid slide into the channel support line at 174.771. While further expansion drove the price to around 179.341, key indicators including the MACD and Bollinger Band midlines provided sideways mixed signals. Conversely, if sellers raise the price and break through the 20- and 40-day simple moving averages at 173.031, the bulls could pull out entirely and carry on the bearish trend in the broad swing in the 167.471 zone.