The EUR/JPY pair saw limited gains on Monday, as bulls faced strong resistance at the 162.00 level. Failure to break above this key level could lead to a resumption of downside momentum.
Technical indicators such as the daily Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest a lack of strong bullish momentum, with selling pressure still prevalent in the market.
EUR/JPY Daily Chart
The pair remains below the 20, 100, and 200-day Simple Moving Averages (SMAs), indicating a bearish trend. The focus is now on the 162.00 resistance level, which could either trigger a rally towards 164.00 or a pullback to 161.00-160.00. Bulls are struggling to overcome the resistance at 161.50-162.00, with a fundamental catalyst needed to break through.
Analysis:
- Resistance at 162.00 level is strong, with bulls getting rejected
- RSI shows slight increase but remains below 50, indicating selling pressure
- MACD bars are flat and red, signaling subdued bearish momentum
- Price below 20, 100, and 200-day SMAs, confirming bearish trend
- Potential for a rally to 164.00 or pullback to 161.00-160.00 depending on 162.00 resistance