EUR/JPY Price Analysis: There is a chance the price could break the trendline to move lower
- EUR/JPY is trading 0.10% lower for the session on Thursday.
- There is a key trendline and the price is currently heading towards it.
EUR/JPY 4-hour chart
In the US session, the pair has come under some pressure with the last 4-hour candle falling 0.34%. The candle engulfs the three previous positive candles which could be a bearish sign. One of the key points on the chart is the long upward sloping black trendline. If this breaks to the downside it could spell trouble for the pair but the red support zone at 119.30 could stem the losses.
The pair moved lower after the price hit the purple horizontal resistance zone of 121.44. If the level does break to the upside it would be a good indication that the pair could move back to the high on the chart of 124.43.
Looking at the indicators, the Relative Strength Index has turned bearish and moved below the 50 mark. The MACD histogram is now red but the lagging signal lines are above but mid-point which does indicate the underlying trend has not changed just yet.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
