Technical Analysis – EURJPY pauses bullish action; support at 20-SMA
May 9, 2023 8:28 am
EURJPY pivoted higher after its three-day downfall from the 15-year high of 151.60 paused near the 20-day simple moving average (SMA) at 147.78.
The recovery mode, however, stalled immediately on Monday as the bulls could not preserve strength above the 23.6% Fibonacci retracement of the 138.81-151.60 upleg at 148.58 despite rising as high as 149.25.
With the RSI marking new lower lows in the bullish area, and the MACD easing below its red signal line, the odds are in favor of the bears. Yet only an extension below the upward-sloping channel and the 20-day SMA at 148.00 could activate fresh selling towards the 38.2% Fibonacci of 146.70. Another step lower could press the price aggressively towards the 145.55-145.20 constraining zone formed by the ascending line from January 18 and the 50% Fibonacci of 145.20. A steeper decline could take a halt near the broken resistance trendline from October 2022 at 144.00.
Alternatively, the price may attempt to cross back above the 148.58 border. If efforts prove successful this time, the spotlight will shift to the 150.00 psychological mark and then to the 151.60 top. The resistance line, which blocked the latest rally in the market, could next come into view around 152.00, while slightly higher, the long-term ascending line from August 2020 may attract greater attention near somewhere between 152.50 and 153.00.
In brief, although EURJPY is facing discouraging technical signals at the moment, it may escape a bearish phase if the 20-day SMA sustains a strong footing under the price.
EURJPY pivoted higher after its three-day downfall from the 15-year high of 151.60 paused near the 20-day simple moving average (SMA) at 147.78.
The recovery mode, however, stalled immediately on Monday as the bulls could not preserve strength above the 23.6% Fibonacci retracement of the 138.81-151.60 upleg at 148.58 despite rising as high as 149.25.
With the RSI marking new lower lows in the bullish area, and the MACD easing below its red signal line, the odds are in favor of the bears. Yet only an extension below the upward-sloping channel and the 20-day SMA at 148.00 could activate fresh selling towards the 38.2% Fibonacci of 146.70. Another step lower could press the price aggressively towards the 145.55-145.20 constraining zone formed by the ascending line from January 18 and the 50% Fibonacci of 145.20. A steeper decline could take a halt near the broken resistance trendline from October 2022 at 144.00.
Alternatively, the price may attempt to cross back above the 148.58 border. If efforts prove successful this time, the spotlight will shift to the 150.00 psychological mark and then to the 151.60 top. The resistance line, which blocked the latest rally in the market, could next come into view around 152.00, while slightly higher, the long-term ascending line from August 2020 may attract greater attention near somewhere between 152.50 and 153.00.
In brief, although EURJPY is facing discouraging technical signals at the moment, it may escape a bearish phase if the 20-day SMA sustains a strong footing under the price.
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