EUR/JPY Plunges to 163.10 Following 0.72% Decline
The EUR/JPY currency pair experienced a significant drop on Friday, falling by 0.72% to reach a low of 163.10. This decline was attributed to multiple factors, including technical indicators and key resistance levels.
Price Action and Resistance Levels
- The pair’s price action plummeted to 163.00 after being rejected at the 164.00 Simple Moving Average (SMA).
- Trading below the 163.50 resistance level indicates a potential continuation of the downtrend.
Technical Indicators Analysis
The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are crucial indicators signaling bearish sentiment for the EUR/JPY pair:
- The MACD histogram’s red coloration and increasing size suggest mounting selling pressure.
- The MACD line positioned below the signal line further supports the bearish outlook.
- The RSI, with a value of 43, resides in negative territory and shows a sharp decline, indicating increased selling pressure.
Key Levels to Watch
Traders and investors should keep an eye on the following levels for potential price movements:
- Support levels at 163.00, 162.50, and 162.00
- Resistance levels at 164.00, 164.50, and 165.00
EUR/JPY Daily Chart
Analysis and Implications
The decline in the EUR/JPY pair, backed by technical indicators and resistance levels, signifies a bearish trend. Traders should be cautious of potential further downward movements and monitor key support and resistance levels for potential trading opportunities.