FX.co ★ IgniteTrade | EUR/JPY

EURJPY Trading Analysis: At the moment, the EUR/JPY price appears to be trading sideways, trading above the 100-day simple moving average downtrend line at 177.458, which would be a strong breakout for buyers, while overadjustment could challenge the resistance consolidation level of 177.358 in the short term. A high inflation index may also have a beneficial impact on the market if it reaches the upper Bollinger band at 179.608 and the middle line of the oscillator cloud, shattering the pivot points at 177.908. Yes, there is. However, given the limited opportunity for recovery and additional fall, a 50% Fibonacci retracement level of 178.658 would be justified. For the time being, the 200-day simple moving average (SMA) that is restraining bullish movement may derail the rebound. Despite the current upward trend, the RSI remains below the neutral 50, while the MACD is over its red trigger midline and overbought. As long as selling pressure remains, all eyes will be on the support-to-resistance trend line at 175.958, which will serve as a major support and resistance level. As long as the price breaks through 177.758, it may confirm additional increases after the violent swing at the 72.5% Fibonacci retracement level of 179.458, which is the highest level of the retracement. In addition to the strength of the previous closing candle, the 25-day and 50-day SMAs are predicted to cover the overbought rebound at 177.258, with a bullish inverted head and shoulders pattern forming above 178.858. If the main sellers stay strong and reject the upside bottom, the 20-day SMA at 179.158 will serve as the first line of defense before the hourly pivot point.