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02/10/24
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EUR/JPY Under Pressure: Bears Dominate as Yen Gains Safe-Haven Status
The EUR/JPY currency pair has experienced a slight decline, trading close to 158.80 during the early hours of the European session on Wednesday, marking a decrease of 0.06% for the day. This ongoing downward trend is reinforced by a negative outlook for the pair, as indicated by the bearish stance of its Relative Strength Index (RSI). Traders are currently eyeing the immediate resistance level at 161.80, while the first support level appears at 158.10.
In the context of a risk-averse environment affecting global markets, the Japanese Yen has gained traction as a safe-haven asset. The technical analysis of the EUR/JPY demonstrates that it maintains a bearish tone on the daily chart, remaining positioned below significant resistance marked by the 100-day Exponential Moving Averages (EMA). The RSI, situated below the midpoint at approximately 45.80, implies there is potential for additional downward movement in the near future.
Key support for the euro-yen pair is identified at the September 30 low of 158.10. If this level is breached, it could trigger a further decline towards 155.60, aligning with the bottom boundary of the Bollinger Band. Continued losses could lead the pair to lower significantly, targeting the August 5 low of 154.41. Conversely, should the pair find strength, the initial resistance point to watch will be at 161.80, marking the upper boundary of the Bollinger Band. A successful breakout beyond this level could result in a rally towards 163.15, aligning with the 100-day EMA, while the 164.00 psychological level may act as another critical level of resistance.
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