EUR/JPY has been trading slightly sideways. On Monday and Tuesday we saw the pair closing the day in the green, but Wednesday’s session had a sharp move towards the 133 area, but closed the daily candle at around 132.100 level. Thursday was marked by continued selling, but it found support at 131.270 area.
On the 4h chart, we can see that the price is being held by this short-term downwards moving trendline that started on the 3rd of February. The potential is still more to the downside and a close of the 4h candle below the 131.270 could indicate that there is some more selling to come in. The RSI is currently at the 41 mark and the MACD is below 0. Both are bearish signs, that could potentially provide us with an indication for today’s direction in EUR/JPY.
On the upside, if we start seeing a move back above the 131.800 area, then, first, the pair could test the mentioned above downwards moving trendline and if it does not hold, second, a break of it would take the price above the 132 area, which opens the path towards the 133 mark.
On the 4h chart, we can see that the price is being held by this short-term downwards moving trendline that started on the 3rd of February. The potential is still more to the downside and a close of the 4h candle below the 131.270 could indicate that there is some more selling to come in. The RSI is currently at the 41 mark and the MACD is below 0. Both are bearish signs, that could potentially provide us with an indication for today’s direction in EUR/JPY.
On the upside, if we start seeing a move back above the 131.800 area, then, first, the pair could test the mentioned above downwards moving trendline and if it does not hold, second, a break of it would take the price above the 132 area, which opens the path towards the 133 mark.