-
EURJPY retraces lower following a 16-year peak.
-
Tests ascending trendline drawn from July 2023.
-
Oscillators suggest weakening momentum.
EURJPY had been in a steady advance since December 2023, peaking at a fresh 16-year high of 165.34 on March 20. Since then, the pair has been undergoing a downside correction, with the upward sloping trendline that connects higher lows since July 2023 currently acting as a strong support.
Should the trendline fail to hold its ground, the pair could slide towards the recent support of 161.94, which lies very close to the 50-day simple moving average (SMA). A violation of that zone could pave the way for the Mach bottom of 160.20. Further declines might then cease at the August-October resistance region of 159.75, which might serve as support in the future.
On the flipside, bullish actions could propel the price towards the February peak of 163.70. Conquering that barricade, the bulls may attack the 2023 high of 164.28. If that barrier fails, the price could ascend to revisit its 16-year high of 165.34.
In brief, EURJPY has been on the retreat in the past few sessions, experiencing a solid setback from its recent 16-year peak. For the bears to gain confidence for a sustained decline, the pair needs to break below the 50-day SMA.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
Gold surges to fresh record high above $3,400 Premium
Gold extends its uptrend and trades at a new all-time high above $3,400 on Monday. Concerns over a further escalation in the US-China trade war and the Fed’s independence smash the US Dollar to three-year troughs, fuelling XAU/USD's rally.
EUR/USD clings to strong gains near 1.1500 on persistent USD weakness
EUR/USD gains more than 1% on the day and trades at its highest level since November 2021 near 1.1500. The relentless US Dollar selling helps the pair push higher as fears over a US economic recession and the Federal Reserve’s autonomy grow.
GBP/USD tests 1.3400 as USD selloff continues
GBP/USD continues its winning streak, testing 1.3400 on Monday. The extended US Dollar weakness, amid US-Sino trade war-led recession fears and heightened threat to the Fed's independence, underpin the pair following the long weekend.
An ambush for the ages
The dollar continued to get sold going into last weekend, but not as badly as one would think given the bad economic reports on Thursday... The BBDXY ended the week at 1,224
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.